Over the years, cryptocurrencies and central banks have always been at loggerheads. There are countries that have indefinitely put an end to cryptocurrency-related activities. Countries like Bangladesh, Saudi Arabia, and Nepal has been hostile to the concept of decentralized currencies. Even, Bangladesh has openly prosecuted individuals or corporations that are linked to cryptocurrencies.
Things changed when Venezuela took the first leap by launching the first state-backed cryptocurrency in the world. The cryptocurrency dubbed Petro is backed by Venezuela’s oil reserves. However, it has recently been revealed that the cryptocurrency is almost ineffective. Another country that is working extensively on launching a cryptocurrency is Iran. Therefore, the nation’s central bank is expected to reveal its stance on cryptocurrency before the end of this month.
Countries That Are Exploring Cryptocurrency
In addition, China has continued to research on ways blockchain and cryptocurrency can be applied to its monetary structure. China’s central bank has blockchain patent filings that are believed to be innovative ways to implement a state-owned coin. However, China has continued to restrict the use of cryptocurrencies within its borders.
Also, Spain’s central bank has come out to state that cryptocurrencies could help its economy. However, the bank stated that it must remain in control of the state-issued digital currency. Sweden is another nation that has kicked off plans to launch a state-owned coin called e-Krona. Further, the Swedish central bank revealed that e-Krona will be a stable coin and will only be used for minor transactions.
Recent developments have shown that central banks are rethinking their stance on the viability of cryptocurrencies. Several reports have revealed that central banks have dedicated their resources to the research of blockchain and cryptocurrencies. In August, a report revealed that the Reserve Bank of India had begun an extensive research on new technologies including cryptocurrencies. Other countries that are exploring the possibility of a state-owned cryptocurrency are Tunisia, Turkey, East-Caribbean Island, and Thailand.