The purpose of this post is to inform readers about the Digital Dollar and countries testing their own CBDC (Central Bank Digital Currency). Please note the Digital Dollar is simply a fiat currency in digital form. Unlike other currencies some CBDC’s isn’t backed by commodities like gold or silver. If a country produce their own CBDC then it’ll be controlled and distributed by the central bank of the hosting government. Citizens would be required to use an eWallet presented by the hosting government and in result all transactions will post on one government ledger. This would pose a huge threat to citizens due to the government having full control of funds. However most countries claim after releasing their own CBDC it would strengthen the economy, provide a very needed regulated digital currency, fight money laundering, corruption, terrorism and more. An interactive map with every country that’s testing or researching their own digital currency can be found here. The following countries was selected for their own segment on this post: The Bahamas, Canada, China, India, Jamaica, Mexico, Nigeria, Pakistan, Russia, Sweden, Ukraine, United Kingdom, United States.
- The Bahamas: During October 2020 The Central Bank of the Bahamas released the Sand Dollar.
- Nigeria: During October 2021 Nigeria became the first African country to release their own CBDC. The eNaira can be used for contactless payments, money transfers and is stored in a digital wallet.
- Ukraine: Since 2016 The National Bank of Ukraine been exploring the possibility of releasing their own CBDC. They are now in the pilot stage.
- India: During February 2022 Finance Minister Nirmala Sitharaman revealed the plans for India’s CBDC (Digital Rupee). They are now in the developing stage with the coin. During 2021 India attempted to ban all crypto currencies that wasn’t distributed by them but their supreme court dismissed their bill.
- Russia: During February 2022 the Bank of Russia told citizens they completed initial trials for their CBDC (Digital Ruble).
- Sweden: During April 2021 Sweden’s central bank announced their plans with researching their own CBDC (e-krona). During February 2022 Riksbank announced they are now on phase 3 of their CBDC trials.
- China: During 2020 China became the first large economy to test their CBDC (e-CNY). They are now in the pilot stage.
- Jamaica: During 2021 Jamaica tested their CBDC and announced that they will be launching their digital dollar in 2022.
- Canada: Canada doesn’t have a current timeline for their CBDC. They are now in the development stage.
- USA: During February 2022 The United States announced they are in the research stage with their CBDC.
- United Kingdom: The United Kingdom doesn’t have a current timeline for their CBDC. They are now in the research stage with their CBDC.
- Mexico: The Central Bank of Mexico plan to release their CBDC by 2024. They are now in the research stage.
- Pakistan: During 2019 Pakistan announced their plan to release a CBDC. They are still in the research stage.
- Brazil: During 2020 the Central Bank of Brazil released their own payment system called PIX. More than 7 billion transactions have been made using PIX since the launch of the system. Brazil expect to launch a pilot for their CBDC (Brazilian Real) in 2022 and their final version of the Brazilian Real is expected to be released during 2024.
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