Quite a few countries like India and the US are looking at central bank digital currencies
Digital currencies are now gaining popularity. The global acceptance of these trading methods is facilitating this trend. While cryptocurrency gains a lot of traction thanks to its decentralized system, governments around the globe are trying to get the most out of virtual currencies in a different way. They can do this using a Central Bank Digital Currency (CBDC), which will be under the control of the central bank. It is essentially the digital form of a country’s fiat currency. In this case, the central bank issues the cryptocurrency or a government-backed account.
As of March 2022, 87 countries are considering issuing CDBC, according to the Atlantic Council, an independent organization based in Washington, DC. About 2 years ago, in May 2020, only 35 countries thought of issuing CBDCs.
Bahamas
In October 2020, the Central Bank of the Bahamas issued Sand Dollars. This is the world’s first CBDC to cover the entire country.
Nigeria
In October 2021, Nigeria became the first African country to establish a CBDC. ENaira is kept in a digital wallet and can be used for contactless in-store payments as well as money transfers.
Union of Eastern Caribbean
The seven countries of the Eastern Caribbean Union have developed their own digital currencies to facilitate fast transactions and serve the unbanked. Antigua and Barbuda, Dominica, Grenada, Montserrat, St. Kitts and Nevis, Saint Lucia, and St. Vincent and the Grenadines are seven countries.
Pilot CBDCs have been tested in several countries.
India
The Indian government has announced that a “digital rupee” will be introduced in 2022-23. Nirmala Sitharaman, Finance Minister of India, made this announcement in February 2022. The Reserve Bank of India (RBI) will support this. Currently, it is in development.
According to the finance minister, CBDCs will strengthen India’s economy, increase efficiency and reduce costs of the country’s monetary management system, and provide a stable, regulated digital currency. reason to compete with private cryptocurrencies.
The announcement comes after a series of reports about the RBI banning all privately traded cryptocurrencies in the country. India’s Supreme Court has overturned an RBI order banning cryptocurrency trading in March 2020.
Russia
In February 2022, the Central Bank of Russia, Russia’s central bank, announced that it had completed initial tests for the CBDC, also known as the “Digital Ruble”. Two of the banks in the test group of the Central Bank of Russia connected to the digital currency network and completed a full cycle of “Digital Ruble” transactions between customers using a mobile banking app, said release.
Sweden
E-krona, a digital currency developed in Sweden, is currently being tested. The experiment will progress from simulated individuals to an environment with external participants.
China
In April 2020, China became the first major economy in the world to test a digital currency. The People’s Bank of China wants the digital yuan, or digital yuan, to be widely used in China by 2022.
Jamaica
Following a successful trial last year, Jamaican Prime Minister Andrew Holness indicated that the Bank of Jamaica will launch a digital Jamaican dollar in 2022.
Canada
Although negotiations have been underway since 2020, the Bank of Canada has yet to set a specific deadline for the launch of its CBDC. It is in a state of development.
USA
The CBDC here is in a research state. In March 2022, the Joe Biden administration signed an Executive Order to promote responsible innovation in the digital asset sector.
UK
While keeping the CBDC in research state, UK authorities have yet to release a schedule. It also does not guarantee future CBDC adoption.
Mexico
This is also in a research state. The Central Bank of Mexico plans to launch a CBDC in 2024.
Pakistan
The administration announced plans for a CBDC pathway in April 2019. The administration has set a timeline to 2025 for the issuance of a CBDC.
