As Bitcoin debuts in El Salvador, Honduras and Guatemala study CBDCs

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Two Central American countries, Honduras and Guatemala, are inspired by their common neighbors’ adoption of Bitcoin (BTC), but they are taking a very different path.

Instead of adopting an existing cryptocurrency as legal tender, like what El Salvador has done, the central banks of Honduras and Guatemala are currently studying central bank digital currencies (CBDCs).

Following the approval of the board of directors, the Central Bank of Honduras has launched a study to determine the feasibility of carrying out a pilot test issuing its own digital currency or a central bank digital currency, according to the president’s remarks. of Honduran central bank Wilfredo Cerratos at a press conference. forum event in Tegucigalpa.

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

In the northwest corner of the region, the CBDC even has a name. Banco de Guatemala vice president Jos Alfredo Blanco said the digital currency iQuetzal will be named after Guatemala’s national bird, as will its fiat currency.

Related: Roxe Hires Former IMF Economist to Head Bitcoin-backed CBDC Project

However, central banks are unwilling to integrate a new form of money into their existing financial system without preparation. Blanco pointed out that the committee tasked with working on a central bank digital currency was formed only six months ago, and that it will take a long time to complete the investigation phase.

Central bank digital currencies are gaining popularity and interest in countries around the world. Nigeria’s CBDC, eNaira, is expected to launch on October 1, the country’s 61st Independence Day. The Ukrainian government is also moving ahead with its CBDC plans by giving the National Bank of Ukraine the power to issue a digital currency.

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