Find out which countries could emulate Venezuela in creating their own digital currency

With the advance of Blockchain technology in the traditional financial sector, some of the most advanced economies in the world are thinking of creating their own digital currency, emulating to some extent their Venezuelan counterpart.

Beyond the controversies that continue around the digital currency focused on the Blockchain with natural mineral reserves in the oil country, Petro has undoubtedly been a technological daring that marked an interesting experiment for many enthusiasts of the blockchain.

However, Venezuela does not seem to be the only sovereign nation that could have its own digital currency. With cases announced such as the digital Yuan recently by China, and previously with some hints by countries coincidentally akin to the South American country – cases Turkey, Cuba and Russia – there are other nations worth considering for what they are developing inside.

China is considering launching an East Asian regional crypto currency to counter the US dollar and the Facebook pound

According to the information published on its website by the BIS (Bank for International Settlements) last January 2020, a number of central banks from some of the most booming economies such as Canada, England, Switzerland, Japan and the Euro zone, would be jointly addressing potential cases of use for digital currencies backed by their institutions, better known as CBDC.

In that context, a report by Raphael Auer -BIS- and Rainer Bohme -University of Innsbruck- cited in the BIS report on the ‚future of payments‘ in its BIS quarterly report for March 2020, emphasizes that the success of a CBDC for „retail use must be safe, accessible and as convenient to use as cash“, as well as protecting privacy.

Based on these technical criteria, some Central Banks have been following the BIS recommendations in order to achieve their mission to meet the new times and challenges imposed by the COVID-19, of ‚contactless payments‘. Let’s explore some of these options.

1. China

There is no doubt that the great economic power and important financial center at present, is advancing a lot since last 2014 showed interest in establishing its own Bitcoin Storm, in order to end its dependence on the hegemony of the dollar.

South Korean central bank launches digital currency pilot programme

Recently the Asian giant has presented another proposal related to crypto currencies to fight against its American counterpart, but this time focused on international payments.

As Cointelegraph recently reported, a recent report notes that 10 members of the Chinese People’s Political Consultative Conference, the country’s main political advisory body, proposed the creation of a digital currency that would be backed by a basket of currencies including the Chinese yuan, the Japanese yen, the South Korean won and the Hong Kong dollar.

In addition, of course, there is the ongoing but undated initiative of its digital yuan, a CBDC project led by the People’s Bank of China.

2.- South Korea

Last April, the Bank of Korea announced that it had launched a pilot program to evaluate the launch of a CBDC.

The pilot scheme would last 22 months, according to the details of the research carried out last February 2020, which is expected to be completed next December 2021.

South Korea will review legal issues related to the potential launch of a CBDC

While the Bank of Korea made it clear that it is not an immediate priority to launch it, but rather a readiness adjustment to be ready when it is required to be issued, the recent announcements by China may reconsider the announcements by the Asian country’s central bank.

In that context, last Monday it was announced that the agency has formed a legal advisory group to assess the problems inherent in the launch of a digital currency CBDC.

3.- Ghana

Recently the first deputy governor of the Bank of Ghana indicated that the government institution was committed to launching a central bank digital currency -CBDC-.

Maxwell Opoku-Afari made the comment during a virtual workshop as reported by a local newspaper and recalled that in the spring, an Office of Technology and Innovation was opened to foster the development of the national industry, focusing on the digital payments sector.

The announcement made by the Bank of Ghana official reaffirms the interest shown in the autumn