While the boom in cryptocurrency continues, several countries are gradually considering creating their version of digital currencies.
The most recent to join the crypto bandwagon in the United Kingdom, which is reported to be exploring an option for a virtual means of exchange similar to bitcoin.
The UK Plans to Launch its Own Digital Currency
In a report by CNBC on Monday, Apr. 19, Rishi Sunak, the Finance Minister of the UK stated during the fintech industry conference that they are planning to create a Treasury-Bank of England task force to know if the country could potentially adopt a new digital currency.
Meanwhile, the Bank of England spoke that they will issue a new form of "digital money" which will likely target the businesses and households around the country. The statement also noted that the bank will not directly replace all cash and its other related forms but they will only co-exist with digital cash.
At the time, the British government has not released any official statement if they want to pursue introducing the British pound's digital counterpart. However, it said that it will review the "objectives, use cases, opportunities and risks" if the plan will be allowed.
Currently, it seems that central banks around the globe have been testing the waters for a possible digital cash venture. This action was attributed to the decreasing cash usage that happens globally, as well as the unexpected rise in the value of bitcoin and other cryptocurrencies in the market.
Last week, bitcoin met a surprising increase of $64,829 in Coinbase, a cryptocurrency exchange. However, it only took over the weekend for it to nosedive which was likely due to its regulation fears.
Dogecoin, the meme coin token which was popularized by Elon Musk has faced an abrupt surge on Monday for 24 hours. It rose by up to 3% and it was valued at about $56,740.
The stable coin projects handed by private entities are also a factor why central banks rely on their option to make their digital currency. Tether and Diem Association are among the said projects.
Another Country that is Controversially Testing its Digital Currency
A surprising statement from China's central bank seems to be leaning on the potential of a digital coin. Earlier this week, it stated that the cryptocurrency is an "investment alternative" despite its ban on the initial coin offerings (ICOs) in 2017.
At the moment, there are numerous tests that the People's Bank of China has been running, specifically involving the creation of the digital currency in some big cities in the country.
On Sunday, Apr. 19, an official from the China central bank said that the digital yuan could be expected by the foreign visitors at the upcoming Beijing Winter Olympics in 2022.
In the future, we could expect a follow-up from other countries that want to test producing the digital coin. The usage of such currency is also suited nowadays given the situation brought by the COVID-19 pandemic. Most likely, this transaction will also be safer than the physical interaction using traditional cash.
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Written by Joen Coronel
