Cryptocurrency evolution: Discuss countries working on their cryptocurrencies.
Cryptocurrencies are gaining popularity day by day. Cryptocurrency is a cheaper solution to sending money across borders. Government cryptocurrency is normally used to refer to a cryptocurrency that has been officially issued like a country’s legal tender. Existing cryptocurrencies bitcoin and Ethereum are legal tender. 33% of Nigerians are using cryptocurrency, according to their survey.
Till now many countries are issued their cryptocurrencies including Ecuador, Venezuela, China, Senegal, El Salvador, Singapore, Tunisia but these countries will not be standing alone for long with Estonia, Japan, Palestine, Russia, and Sweden looking to launch their national cryptocurrencies. In the study of bitcoin.com, the Philippines’ Central Bank has approved several crypto exchanges to operate as remittance and transfer companies in the country.
Venezuela: Venezuela launched a new payment system that is digital Bolivar demonstrates. That was confused by CBDC. In 2018, Venezuela because the first country and became the only nation to issue its cryptocurrency is Petro.
Petro’s official website asserts that Petro can be used to pay for goods and services in Venezuelan businesses and institutions that accept it and that Petros can be exchanged for other cryptocurrencies. But later Petro was dismissed by foreign observers.
El Salvador: El Salvador is the first country in the world to pass a Bitcoin Law’ it allows the use of bitcoin alongside the US dollar. It became government cryptocurrency and equivalent of dollarisation. But is not considered the legal liability to El Salvador central bank. It simply declares payments in bitcoins legal in that country, and it does not commit to any fixed exchange rate between bitcoin and US dollars. The holders of bitcoins may experience capital gains or losses.
When El Salvador adopted bitcoin, the World Bank and the International Monetary Fund declined to help the country implement, transparency, financial and legal issues.
Russia: Russia issued its currency a couple of months because you can track the transaction history of the currency. Using this the government can crack down on activities such as financial theft. This feature also enables a new form of revenue for the Russian government, they put a 10% tax on any transaction, who want to keep private. It is estimated that over 17.3 million people, 11.9% of Russia’s total population, currently own cryptocurrency.
India: India is planning to launch its cryptocurrency. In the parliament winter session, the finance ministry in a written reply to the Central Bank Digital Currency that about proposal from the Reserve Bank of India to amend the Payment and Settlement Systems Act, 2007. There are both benefits and risks to consider when it comes to a central bank introducing CBDC. The benefits include lower transaction costs, higher seigniorage, reduced settlement risk, and a more efficient payments option. Some risks need to be carefully evaluated.
The countries of the world are starting to issue their cryptocurrencies because they are seeing the benefits of the technology. Advocates of cryptocurrencies say they can help improve access to basic financial services in countries, where large segments of the population remain unbanked and help make regular payments easier.