Many countries are growing interested in creating digital asset currencies for their citizens, primarily because of the ongoing crypto trend Bitcoin and Ethereum inspired. Although China is still the most active concerning the government-issued currency, many other nations might soon be joining the race as others start feasibility studies to understand how the currencies would work.
The European Union also announced that they would create a digital Euro instead of individual currencies for each country. The Euro would allow any country in Europe to transact and spend in any country in the continent. Morocco’s plan could encourage other African nations, as not many countries have shown interest in Central Bank Digital Currency from that region.
Morocco’s Central Bank sets up a committee on CBDC
A local media from the country shared that Morocco is thinking about creating a government-issued digital currency and has decided to study the asset. Despite many countries interested in centrally controlled digital assets, developed countries like America don’t know if they should issue currency.
The chair for American’s Central Bank said that the country would get public opinion concerning the virtual money’s creation. The CBDCs issue caused many controversies for China, as there were lots of Americans who believe the Asian country wants the digital Yuan to replace the Dollar’s stance in the global market.
The media shared this information this weekend concerning the country’s central bank, Bank Al-Maghrib’s effort to make the government-issued digital currency possible by setting up a committee. The committee, which consists of digital currency experts, would share the advantages that would come with the government-issued virtual currency.
Many countries are still skeptical about cryptos, so they have decided to create their own virtual money to discourage citizens from exploring private digital assets. Some countries like India, which plans to ban cryptos like Bitcoin, plan to launch their own central bank-issued virtual money.
Pandemic led to the rise in digital currency usage
Experts believe that the pandemic has contributed to the current interest in the government-issued currency, as many nations are yet to return to their previous economic situation. Bitcoin’s huge success is also a factor to consider in the virtual money’s creation, as governments hope to explore some parts of the industry.
People like cryptos because of the easy access; people can buy their digital assets anywhere. Another benefit is that cryptos are decentralized in nature, meaning that there are no third-parties to prevent some transactions, which many people like.
Governments have been trying to reduce the growth of digital assets by creating some harsh regulations. The harsh regulations have not stopped the industry from growing, as investors continue to make notable gains through virtual investments. The country also utilized some of BIS’s data from the recent study it took on CBDCs.
The international agency shared that up to 20% of countries plan to issue CBDCs within the next three years. The committee would study the negative effects a CBDC would have on the economy and financial stability.
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