Two Central American international locations, Honduras and Guatemala, are taking a cue from their frequent neighbor’s adoption of Bitcoin (BTC), however they’re taking a really completely different highway. 

As a substitute of embracing an present cryptocurrency as a authorized tender, like what El Salvador did, the central banks of Honduras and Guatemala are presently studying central financial institution digital currencies (CBDC).

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Following the approval of the board of administrators, the Central Financial institution of Honduras kicked off a examine “to find out the feasibility of conducting a pilot take a look at issuing its personal digital cash or a central financial institution digital foreign money,” in line with Honduras central financial institution president Wilfredo Cerrato’s remarks at a discussion board occasion in Tegucigalpa.

He stated that the Central American Financial Council, or Consejo Monetario Centroamericano, the best financial authority within the area, ought to handle the adoption of digital currencies.

Within the northwestern nook of the area, the CBDC even has a reputation. Banco de Guatemala vice chairman José Alfredo Blanco stated the digital foreign money — iQuetzal — could be named after the nationwide fowl of Guatemala, similar to its fiat foreign money.

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Nonetheless, the central banks usually are not desirous to combine a brand new type of foreign money into their present monetary system with out preparation. Blanco confused that the committee to work on a central financial institution digital foreign money had been fashioned solely six months in the past, and it’ll take a very long time to finish the investigation section.

Central financial institution digital currencies have been gaining traction and curiosity in international locations all over the world. Nigeria’s CBDC, the eNaira, is about to launch on Oct. 1, on the nation’s 61st Independence Day. The Ukrainian authorities can also be shifting ahead with its CBDC plans by giving the National Bank of Ukraine authority to issue a digital currency.