• These two Central American countries are interested in CBDCs after being inspired by El Salvador

  • It has only been two days since El Salvador legalized Bitcoin as a national tender, allowing it to coexist with the US dollar. While many people, including Salvadorans, were dissatisfied, others highlighted a positive story.

    Charles Hoskinson, for example, believes that many other countries will follow El Salvador’s lead. While cryptos such as Bitcoin may be a step too far for most people, some countries may be taking the next best step.

    Honduras and Guatemala in Central America are currently investigating central bank digital currencies, or CBDCs.

    “The central banks of Honduras and Guatemala are looking into digital currencies in the aftermath of El Salvador’s adoption of Bitcoin as legal tender.”

    As far as Honduras is concerned, this is not a premature step. According to Wilfredo Cerrato, president of the country’s central bank,

    “The Central Bank of Honduras has also recently begun, with board approval, a study to determine the feasibility of conducting a pilot test issuing its own digital money or a central bank digital currency.”

    He went on to say that the Central American Monetary Council, or Consejo Monetario Centroamericano, should first investigate the possibility of adopting digital currencies. Meanwhile, the country had previously installed crypto-ATMs, which were well received by the majority of the crypto-community.

    On the contrary, Vice President of the Banco de Guatemala, Jose Alfredo Blanco, believes that the iQuetzal (the digital currency),

    “It may take some time to complete the investigation phase.”

    However, it is worth noting that the committee in charge of CBDC work was only formed six months ago.

    Central bank digital currencies are gaining popularity and acceptance in many other parts of the world as well. Nigeria has recently laid the groundwork for this, with the e-Naira set to launch on October 1st.

    Furthermore, China and India, among others, have taken significant steps to pursue CBDCs.

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