The government of Bangladesh has revealed it will conduct a feasibility study to introduce a central bank digital currency (CBDC) in the country.
According to NewsOnAir, the Bank of Bangladesh will undertake the study on the possibility of launching CBDC in virtual transactions to encourage startup and ecommerce businesses.
Mustafa Kamal – the Finance Minister of Bangladesh – announced the development in the country’s parliament during its national budget. He used the time to highlight the risk in the use of virtual currencies such as cryptocurrencies, but added that many nations are working to launch digital currencies as an alternative to crypto.
He also remarked that several countries in Asia such as India, Malaysia and Singapore are also in the early stages of launching a digital currency.
The publication highlighted that Bangladesh has so far adopting a cautious approach to digital and cryptocurrencies such as Bitcoin, Ripple and Ethereum.
The Bank of Bangladesh previously issued a circular in July 2021 asking people to refrain from using such currencies to avoid financial and legal risks.
A study by the Bank of International Settlements earlier this year found nine out of ten central banks are exploring the use of central bank digital currencies (CBDCs).
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