Here’s a list of countries to officially launch digital currencies
In order to protect their people from investing in volatile cryptocurrencies, curb fake currency circulation, and reduce costs associated with physical cash management, countries across the globe are looking towards digital currencies.
Hyderabad: In order to protect their people from investing in volatile cryptocurrencies, curb fake currency circulation, and reduce costs associated with physical cash management, countries across the globe are looking towards digital currencies. India also joined the digital currency bandwagon by issuing a retail digital currency on a pilot basis on December 1.
Digital currency, also called Central Bank Digital Currency (CBDC), is an online currency available in the electronic or digital form issued by the respective central banks.
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In India, the decision to issue the digital version of cash was first announced by Finance Minister Nirmala Sitharaman while presenting the 2022 Union Budget in the Parliament. The Reserve Bank of India (RBI) launched the pilot for the retail digital rupee in four cities – Mumbai, New Delhi, Bengaluru, and Bhubaneswar. However, the project will be extended to some other popular cities, including Hyderabad.
According to data from the Atlantic Council, an American think tank in the field of international affairs, there are around 105 countries across the globe that are exploring digital currencies. Of these, 50 countries have so far reached the advanced phase, including India, and 11 countries already rolled out digital currency following successful pilot projects.
The Bahamas became the first currency in the world to officially launch a digital currency. The digital currency, Sand Dollar was launched in October 2020 across the country.
Nigeria was the second country in the world to launch CBDC after the Bahamas. It launched its digital currency named ‘eNaira’ in October 2022.
The Eastern Caribbean Central bank, the apex bank of the Organization of the Eastern Caribbean States, launched Dcash on March 31, 2021. East Caribbean includes eight independent Caribbean States or islands namely Antigua and Barbuda, Montserrat, the Commonwealth of Dominica, Grenada, St. Kitts, and Nevis, Saint Lucia, St. Vincent, and the Grenadines, and Anguilla. Anguilla was the last island in the Eastern Caribbean Union to adopt ‘DCash’ in June 2022.
Jamaica is the latest to join the list as the Bank of Jamaica (BOJ) launched the digital currency ‘JAM-DEX’ in May 2022.
In addition to India, countries like the UAE, Ghana, South Africa, Malaysia, Singapore, and Thailand, among others, have already issued digital currency on a pilot basis.
