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- CBDC or Central Bank Digital Currency pilot projects are running in many countries
- El Salvador will serve as a test case for Cryptocurrency
- Bank studying Cryptocurrency very closely
El Salvador had made history when it adopted Bitcoin as a legal tender. However, the transformation was not smooth, and the government-backed digital wallet hit problems with technological glitches and an angry protest by mistrustful citizens.
Finally, Bitcoin has become a legal tender in El Salvador, and neighboring countries are closely watching the unfolding scene. Two Central American nations, Honduras and Guatemala, are studying central bank digital currencies and the value they could bring to their respective monetary systems.
However, instead of accepting Cryptocurrency in its entirety as done by El Salvador, which has accepted BTC as a legal tender, these countries are looking at CBDC.CBDC or Central Bank Digital Currency pilot projects are running in many countries, and China has taken a massive leap in this direction. The digital Yuan is in existence and is being used for paying salaries of Municipal Workers in Beijing.
Central American Nations study the feasibility of launching their very own digital currency
After approvals by the board of directors, the Central Bank of Honduras has kick-started a pilot project to study the feasibility of launching its very own digital currency. Honduras central bank president Wilfredo Cerrato declared the news at a forum event in Tegucigalpa.
Wilfredo Cerrato said that the Central American Monetary Council, or Consejo Monetario Centroamericano, which is the highest monetary authority in the region, will have to take the call to adopt cryptocurrencies or not. In the North-West corner of Central America, there exists a CBDC, and it has a name. Banco de Guatemala vice president José Alfredo Blanco said the digital currency — iQuetzal. It is the legendary national bird of Guatemala, just like its fiat currency.
Banks adopt a wait and watch policy
It must be noted that Central Banks are not eager to rush into Cryptocurrency, nor are they willing to integrate into the existing financial framework without any preparations. Blanco said that a committee has already been set up to work on CBDC. However, the investigative phase will be a prolonged one and will take time.
CBDC has been gaining prominence in recent times. Several countries are running pilot projects, and some have started rolling out digital currencies. Nigeria will launch its CBDC in eNaira on October 1, on the country’s 61st Independence Day. The Ukraine Government is also toying with the idea of giving the National Bank of Ukraine authority to issue a digital currency.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
