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Know which countries could emulate Venezuela in creating their own digital currency

June 17, 2020

With the advancement of blockchain technology in the traditional financial sector Some of the most advanced economies in the world are considering creating their own digital currency. to some extent emulate his peer Venezuela.

Aside from the controversy surrounding the digital currency, which focuses on the blockchain with natural mineral reserves in the oil country, Petro was undoubtedly a technological daring that was an interesting experiment for many blockchain enthusiasts.

However, Venezuela doesn’t seem to be the only sovereign nation that could have its own digital currency. With cases recently announced by China as the digital yuan, and previously with some pointers from countries that happen to be related to the South American country – cases Turkey, Cuba, and Russia – there are other nations worth considering too what they develop behind closed doors.

Know which countries could emulate Venezuela in creating their own digital currencyKnow which countries could emulate Venezuela in creating their own digital currency

According to information published by the BIS (Bank for International Settlements) on its website in January 2020, a number of central banks from some of the most booming economies such as Canada, England, Switzerland, Japan and the eurozone, Together, they would address potential digital currency use cases supported by their institutions, better known as CBDC.

In this context, a report by Raphael Auer-BIS and Rainer Bohme University Innsbruck, cited in the BIS report on the “future of payments” in their quarterly BIS report for March 2020, emphasizes that the success of a CBDC for use “The retailer needs to be as secure, accessible, and convenient to use as cash.”in addition to protecting privacy.

Based on these technical criteria, some central banks followed the BIS recommendations to accomplish their mission of living up to the new times and challenges that COVID-19 has placed on “contactless payments”. Let us examine some of these options.

1.- China

Without a doubt, that the great economic power and the important financial center today It has come a long way since interest in setting up its own CBDC was demonstrated last yearto end its dependence on the hegemony of the dollar.

Recently, the Asian giant has made another proposal related to cryptocurrencies to fight its American counterpart, but this time with a focus on international payments.

As Cointelegraph recently reported, a recent report found that 10 members of the Chinese People’s Political Consultative Conference, the country’s main political advisory body, proposed the creation of a digital currency supported by a basket of Chinese yuan currencies. , the Japanese yen, the South Korean won and the Hong Kong dollar.

In addition, there is of course the initiative of the digital yuan, which is still in force but has no start date. a CBDC project led by the People’s Bank of China.

2.- South Korea

Last April The Bank of Korea announced that it has launched a pilot program to assess the launch of a CBDC.

The pilot project would take 22 months, according to the details of the February 2020 studywhich is expected to end next December 2021.

Although the Bank of Korea made it clear that its introduction is not an immediate priority, but rather an adjustment of willingness to be ready when its issuance is required, what China recently announced could rethink the announcement by the Asian country’s central bank.

In this context, news was released last Monday that the panel had set up a legal advisory group to assess the problems associated with the introduction of a digital CBDC currency.

3.- Ghana

Recently the first vice governor of the The Bank of Ghana noted that the government institution was required to launch a central bank digital currency – CBDC.

Maxwell Opoku-Afari said during a virtual workshop, as reported by a local newspaper, and recalled that an office for technology and innovation was opened in the spring to promote the development of national industry with a focus on digital payments. .

The announcement by the Bank of Ghana official confirms the interest shown in autumn 2019 in the creation of a CBDC. within a regulatory framework that is aligned with agency guidelines.

4.- Marshall Islands

It is undoubtedly one of the closest countries to issue its own digital currency called SOV. A sovereign coin from Joel Telpner, cryptocurrency adviser in the Marshall Islands.

In a recent Cointelegraph interview, Telpner noted that the SOV roadmap is currently in an 18-month phase and that the government is likely to issue a preSOV before taking the final step.

Since then, the nation has started to develop its digital currency project with a project that is legally protected under the 2018 Local Currency Act.

5.- Bahamas Islands

Last February The Central Bank of the Bahamas announced on its website that its advertised Digital Bahamas Dollar project will start in the second half of this year.

Sand Dollar, piloted by the Caribbean nation last December 2019, has expanded this first half of the year to the second city of Abacos. after his success in Exumas with a registration of more than 1,200 participants from his original projection of 500.

The project is part of the Bahamas Payment System’s modernization initiative and one of the most advanced in this regard.

Recently, the team behind the proposal was looking for qualified technical staff to be part of their team, which is responsible for executing the digital currency from the pilot phase to production.

6.- Canada

It is the first country to experiment with the development of a digital currency using legal tender called CAD-COINas it was seen in a closed presentation to the media of the Royal Bank of Canada on the social network Twitter at that time, as reported by DiarioBitcoin for that time.

Despite the currents surrounding its implementation, The issuer has not yet officially declared any information on its website that indicates a formal introduction of a digital currency.

Despite this, Calgary, a city in the Canadian province of Alberta, allowed citizens to pay for local goods and services in December 2018 with their new digital Calgary dollar.

7. United Arab Emirates

In January 2019, the United Arab Emirates Central Bank and the Saudi Arabian Monetary Authority announced the introduction of a common digital currency called “But” for purely interbank purposes.

Although the digital currency itself is not a CBDC, it would technically work as such and would be limited to financial statements that initially used distributed accounting technologies between the two countries’ central banks.

The project was discussed in detail at a bilateral meeting between the two nations in November 2019. and joins the Dubai case, where a digital currency is already supported by the local government.

8.- France

Last May, the Bank of France was the first large European country to successfully test a digital euro. Operation on a blockchain.

Although the agency did not go into detail, stated that the current pilot program will be used in the wholesale of a CBDC focused on the terrain of banks and institutional actors.

As the announcement highlights, the pilot was successfully conducted on May 14 for the sale of securities for a digital euro.

The plans of European power would be promoted as part of efforts by Christine Legarde, President of the ECB, to promote a digital CBDC currency to meet the demand for faster and cheaper cross-border payments in the euro area.

9.- Japan

In an interview with Reuters in February this year, Kozo Yamamoto, a member of the House of Liberal Democratic Party and a former official of the Japanese Treasury, said argued that Japan should implement its CBDC quickly.

In an exclusive interview with Cointelegraph Japan in March of the same year He noted that the lucky digital currency itself should take 2-3 years, even if blockchain technology is supported.

For the politician, a digital yen could act as a kind of bridge currency between other digital currencies.

Officially, a Bank of Japan official admitted in the first quarter of this year that a CBDC investigation team would be set up and it will cooperate with other countries in the investigation, alluding to the cooperation with other European central banks announced in January this year.

10.- Holland

In a 45-page report published on April 21, 2020 by the Dutch Central Bank (DNB), The agency agreed to play a leading role in researching and developing its own digital currencyas well as a digital currency from all over Europe.

According to the bank, the measures partially react to the decline in paper money consumption in the Netherlands.

11.- Sweden

The Swedish central bank, Riskbank, announced the testing of its first cryptocurrency called e-krona last February. the first of its kind for this time on the old continent.

According to the agency, e-krona users can manage payments, deposits and withdrawals via mobile applications. You can also perform operations using smartwatches, debit and credit cards.

The pilot project will use Corda’s blockchain network and will start with the advice of the Irish company Accenture.

In addition to the above countries, there are some statements from key officials in countries such as Australia, England, Switzerland and the United States that have indicated the future possibility of a CBDC in their country.

However, there is as yet no official evidence from monetary policy agencies in these countries that this is currently being done.