INSUBCONTINENT EXCLUSIVE:
Quite a few countries like India and the United States are considering central bank digital currenciesDigital currencies currently are
A global acceptance of these modes of transaction is facilitating this trend
While cryptocurrency gained much attraction due to its decentralised system, governments around the globe are trying to make the most out of
virtual currencies in a different way
They can do this with the use of a Central Bank Digital Currency (CBDC), which will be under the control of the central bank
It's basically the digital form of a country's fiat currency
In this case, the central bank issues electronic coins or accounts backed by the government.As of March 2022, 87 countries are considering
issuing a CDBC, according to the Atlantic Council, an independent organisation based in Washington, D.C
About 2 years ago, in May 2020, only 35 countries were thinking of issuing a CBDC.The BahamasIn October of 2020, the Central Bank of the
Bahamas issued the Sand Dollar
It was the world's first CBDC that covered an entire country.Nigeria In October 2021, Nigeria became the first African country to establish
The eNaira is kept in a digital wallet and can be used for in-store contactless payments as well as money transfers.Eastern Caribbean
UnionSeven Eastern Caribbean Union countries developed their own digital currency to assist in speedy transactions and serve those without
Antigua and Barbuda, Dominica, Grenada, Montserrat, St
Kitts and Nevis, Saint Lucia, and St
Vincent and the Grenadines are the seven countries.Pilot CBDCs are already being tested in a few countries.IndiaIndia's government has
Nirmala Sitharaman, India's finance minister, had made the announcement in February 2022
The Reserve Bank of India (RBI) will back this
Currently, it's under development status.According to the finance minister, the CBDC would strengthen India's economy, increase efficiency
and lower expenses of the country's currency management system, and provide a stable, regulated digital currency that will compete with
private cryptocurrencies.The announcement came after a series of reports of the RBI banning all private cryptocurrencies from being traded
The Supreme Court of India quashed the RBI order to ban cryptocurrency transactions in March 2020.RussiaIn February 2022, the Bank of
Two of the banks in the Bank of Russia's trial group had already connected to the digital currency network and completed a full cycle of
"Digital Ruble" transactions between customers using mobile banking apps, stated a release.SwedenThe e-krona, a digital currency developed
in Sweden, is now being tested
The testing will progress from simulated individuals to an environment with external participants.ChinaIn April 2020, China became the
world's first large economy to test a digital currency
The People's Bank of China wants the e-CNY, or digital yuan, to be widely used in China by 2022.JamaicaFollowing a successful test last
year, Jamaican Prime Minister Andrew Holness indicated that the Bank of Jamaica will launch a digital Jamaican dollar in 2022.CanadaThough
talks have been on since 2020, the Bank of Canada still does not have a concrete timeline for the launch of its CBDC
It's in development status.USAThe CBDC here is under research status
In March 2022, the Joe Biden administration signed an Executive Order to promote responsible innovation in the field of digital
assets.United KingdomWhile keeping CBDC under the research status, the UK administration doesn't yet provide a timeline
Nor does it guarantee the application of CBDC in the future.MexicoThis, too, is under research status
The Central Bank of Mexico plans to launch a CBDC by 2024.PakistanThe administration had announced its plans for a CBDC way back in April
It has set a timeline till 2025 to issue a CBDC.
