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Friday, Sep 24, 2021

El Salvador Adopted Bitcoin, Guatemala & Honduras Study Central Bank Digital Currency Path

El Salvador Adopted Bitcoin, Guatemala & Honduras Study Central Bank Digital Currency Path

As El Salvador made Bitcoin legal tender, Honduras and Guatemala are studying central bank digital currencies (CBDCs) and could they bring added value to their countries' monetary systems.

Two small Central American nations, Honduras and Guatemala, are clearly closely following what is going on in El Salvador regarding Bitcoin adoption. However the duo are looking into options to take a different road.

The central banks in Honduras and Guatemala are currently studying central bank digital currencies (CBDC), instead of looking for the answers to strengthen their economies through Bitcoin.

After receiving an approval from its board of directors, the Central Bank of Honduras launched a study. According to Honduras central bank president Wilfredo Cerrato’s the aim is “to determine the feasibility of conducting a pilot test issuing its own digital money or a central bank digital currency.”

According Cerrato, the Central American Monetary Council, or Consejo Monetario Centroamericano, the highest monetary authority in the region, should address the adoption of digital currencies.

Honduras’ next door neighbor, Guatemala, has already chosen a name for their possible future CBDC. According to José Alfredo Blanco, vice president of Banco de Guatemala, the digital currency — iQuetzal — would be named after the national bird of Guatemala, just like its fiat currency (quetzal).

Neither of the central banks are rushing to integrate a CBDC into their existing financial system without preparation. Blanco stressed that the committee to work on a central bank digital currency had been formed only six months ago, and it will take a long time to complete the study and exploration phase.

Central bank digital currencies have been gaining traction and interest in countries around the world. Nigeria’s CBDC, the eNaira, is set to launch on October 1 this year, on the country’s 61st Independence Day. The Ukrainian government is also moving forward with its CBDC plans by giving the National Bank of Ukraine authority to issue a digital currency, among others.

Source: El Salvador Adopted Bitcoin, Guatemala & Honduras Study CBDC Path – Fintechs.fi

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