Bitcoin launches in El Salvador, Honduras and Guatemala Research CBDC

Two Central American countries, Honduras and Guatemala, are asking their mutual neighbors for comments on the introduction of Bitcoin (BTC), but are going a very different path.

Instead of accepting an existing cryptocurrency as legal tender like El Salvador did, the central banks of Honduras and Guatemala are now working on central bank digital currencies, kindergarten or CBDC.

After the approval of the Board of Directors, the Central Bank of Honduras began a study “to determine the feasibility of conducting a pilot test for issuing its own digital currency or digital currency” of the central bank, “commented Central Bank President Wilfredo Cerrato. at a forum event in Tegucigalpa.

He said the Central American Monetary Council, or Consejo Monetario Centroamericano, the highest monetary authority in the region, should look into the adoption of digital currencies.

In the northwest corner of the area, CBDC even has a name. Banco de Guatemala Vice President Jose Alfredo Blanco said the digital currency – iQuetzal – will be named after Guatemala’s national bird, like its fiat currency.

Related: Roxe is hiring a former IMF economist to lead the Bitcoin-backed CBDC project

However, central banks do not seek to incorporate a new currency into their existing financial systems without preparation. Blanco stressed that the central bank’s working committee on digital currencies was only established six months ago and that it will take a long time to complete the investigation phase.

Central bank digital currencies have caught the attention of countries around the world. Nigeria’s CBDC, eNaira, will be launched on October 1st, the country’s 61st Independence Day. The Ukrainian government is also making progress with its CBDC plans by granting the National Bank of Ukraine the right to issue digital currencies.