Which countries will be the first to switch to digital currency
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| Which countries will be the first to switch to digital currency |
Which countries will be the first to switch to digital currency?
Central Bank Cryptocurrencies (CBDCs) have the potential to become fiat equivalent. Although there is no talk of a massive transition to CBDC, many states are seriously thinking about introducing national digital currencies.
China
At the end of 2019, the head of the payment and settlement decision unit of the People’s Bank of China said that the digital yuan is already ready for pilot trials.
The development phase has been completed: a digital currency-based electronic payment system (DCEP) is ready, and functional research and testing has been completed. The next step is to launch pilot programs. After that, the digital yuan will go into circulation.
However, it will be more like a fiat currency. Unlike traditional cryptocurrencies, the digital yuan will become part of the country's money.
Due to an outbreak of coronavirus, work on DCEP has been suspended. So far, Chinese people are limited in their movement around the country, and therefore the further fate of the digital renminbi remains in question.
The development phase has been completed: a digital currency-based electronic payment system (DCEP) is ready, and functional research and testing has been completed. The next step is to launch pilot programs. After that, the digital yuan will go into circulation.
However, it will be more like a fiat currency. Unlike traditional cryptocurrencies, the digital yuan will become part of the country's money.
Due to an outbreak of coronavirus, work on DCEP has been suspended. So far, Chinese people are limited in their movement around the country, and therefore the further fate of the digital renminbi remains in question.
Russia
On April 19, the Central Bank of Russia financial regulator presented the report “Is there a future for digital currencies of central banks”. And the Central Bank believed in the prospects of the national digital currency!
In the report, officials wrote that CBDC could well be an alternative to cash if it turned out to be “liquid and easy to use.” Recall that two years ago, the regulator called digital currencies a “money surrogate.”
In the report, officials wrote that CBDC could well be an alternative to cash if it turned out to be “liquid and easy to use.” Recall that two years ago, the regulator called digital currencies a “money surrogate.”
USA
The dollar is far from being so “digitized” as the yuan. However, at the beginning of the year, the former chairman of the Commodity Futures Trading Commission (CFTC), Christopher Giancarlo, announced the creation of the Digital Dollar Foundation, a non-profit research center. The organization is exploring the economic potential of the US digital currency and its potential benefits.
Giancarlo is confident that in the next few years many central banks will start launching their own electronic money. Nevertheless, one can hardly expect the appearance of a “digitized” dollar in the near future: studies began only in January of this year, a month and a half before the crisis.
Giancarlo is confident that in the next few years many central banks will start launching their own electronic money. Nevertheless, one can hardly expect the appearance of a “digitized” dollar in the near future: studies began only in January of this year, a month and a half before the crisis.
Sweden
At the end of 2019, the head of the Central Bank Stefan Ingves said that Sweden plans to release a digital crown. The incentive for such a serious reform was the Facebook project “Libra”.
In addition, another reason to “digitize” the national currency is the desire to reduce the use of cash. Many stores in the country no longer accept bills. The project is currently under development, but some banks have already begun testing the system.
In addition, another reason to “digitize” the national currency is the desire to reduce the use of cash. Many stores in the country no longer accept bills. The project is currently under development, but some banks have already begun testing the system.
Japan
The Central Bank of Japan said that it should be ready to issue its national cryptocurrency, if citizens want it. The regulator is not ready to release it immediately, but is already conducting research on the potential of digital money.
The head of the Central Bank, Haruhiko Kuroda, also said that the Bank of Japan does not approve of the distribution of stablecoins, because, in theory, they can negatively affect the stability of the financial system around the world. However, Japan does not deny the possibility of switching to CBDC soon, if necessary.
The head of the Central Bank, Haruhiko Kuroda, also said that the Bank of Japan does not approve of the distribution of stablecoins, because, in theory, they can negatively affect the stability of the financial system around the world. However, Japan does not deny the possibility of switching to CBDC soon, if necessary.
Palestine
In 2019, Prime Minister Mohammad Staye said that the government was thinking about creating its own digital currency. The new cryptocurrency, the Palestinians are planning to replace Israeli shekels, circulating in the country.
Staye noted that one of the reasons for the planned reform is Palestine’s reluctance to be financially dependent on the shekel and its exchange rate. The state does not have a national currency: mainly American dollars and Israeli shekels, euros and regional currencies are used.
However, research and development has not yet been announced.
Staye noted that one of the reasons for the planned reform is Palestine’s reluctance to be financially dependent on the shekel and its exchange rate. The state does not have a national currency: mainly American dollars and Israeli shekels, euros and regional currencies are used.
However, research and development has not yet been announced.
Canada
At the end of February 2020, Deputy Head of the Bank of Canada Tim Line said that the Central Bank “just in case” is preparing to issue digital currency. The regulator is already creating the infrastructure necessary for the functioning of its own cryptocurrency.
So far, the bank has no plans to do this, but in the event of a fall in demand for cash in Canadian dollars, the Bank of Canada will have no choice. Lane noted that digital currency will have the same benefits as physical money. In other words, the same thing, but in digital format.
In addition, the transition to CBDC was considered by Egypt, Singapore, Ukraine, India, Estonia, Iran and the Marshall Islands. But to date, there is not a single successful, convenient and affordable digital national currency. Many central banks assess the potential of CBDC, but how and when they will begin to realize it is still unclear.
# Cryptocurrency
So far, the bank has no plans to do this, but in the event of a fall in demand for cash in Canadian dollars, the Bank of Canada will have no choice. Lane noted that digital currency will have the same benefits as physical money. In other words, the same thing, but in digital format.
In addition, the transition to CBDC was considered by Egypt, Singapore, Ukraine, India, Estonia, Iran and the Marshall Islands. But to date, there is not a single successful, convenient and affordable digital national currency. Many central banks assess the potential of CBDC, but how and when they will begin to realize it is still unclear.
# Cryptocurrency