Why are countries not issuing their own digital currency?

Abeer

Last Update vor 7 Monaten

There are a lot of developed and Under-Developed countries which have their own digital currencies.

Some of the countries where CBDCs have been established are:

The Bahamas - The Sand Dollar was introduced by the Bahamas' Central Bank in October 2020. It was the world's first countrywide CBDC.

Nigeria - Nigeria became Africa's first country to establish a CBDC last October. The eNaira is kept in a digital wallet that can be used for in-store contactless payments as well as money transfers.

Some of the countries doing pilot studies to evaluate CBDCs:

Sweden - Sweden is testing a digital currency dubbed the e-krona. The testing will progress from simulated users to a real-world scenario with selection.

Sweden's Riksbank has produced a proof of concept for CBDC and is investigating its technological and policy consequences.

China - In April 2020, China became the world's first major economy to pilot a digital currency. By 2022, the People's Bank of China hopes to have widespread domestic use of the e-CNY, or electronic yuan.

According to the IMF, it currently has more than a hundred million individual users and billions of yuan in transactions.

Jamaica - Jamaica’s prime minister Andrew Holness assured their citizens that the Bank Of Jamica will soon bring out a digital Jamaican dollar in 2022 after a successful pilot last year.

Some of the countries that are developing CBDCs:

India - India's government said this week that it will introduce a state-backed virtual money next year.

The "digital rupee" will be built on blockchain technology and will be ready by the end of March 2023. The Reserve Bank of India will support it.

Nirmala Sitharaman, India's finance minister, said the virtual currency will provide the digital economy a "major boost" and would also result in a more functional and cost-effective currency management solution.

Eurozone - Last July, the European Central Bank (ECB) said that it is actively investigating the possibility of creating a digital edition of the euro.

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