• Wed. Jun 22nd, 2022

Bangladesh is exploring digital currency as an alternative to crypto

ByHazel R. Lang

Jun 9, 2022

Finance Minister AHM Mustafa Kamal revealed the draft budget plan for the financial year 2022-23 in parliament on Thursday, highlighting the growing risks associated with the use of virtual currencies, such as cryptocurrency.

But, he added, many central banks around the world are working to launch digital versions of their currencies as an alternative to cryptocurrencies to facilitate virtual transactions and encourage startups and e-commerce businesses.

“Thanks to the timely measures of the current government, the coverage of internet and e-commerce in the country has increased significantly,” Kamal said, stressing the need for virtual currencies.

Authorities in Bangladesh have so far been skeptical about the use of cryptocurrencies, such as bitcoin, ethereum and ripple. A number of people have been arrested for illegally using cryptocurrencies in crimes.

In July 2021, Bangladesh Bank reiterated its position on cryptocurrencies and asked everyone to refrain from its transactions and promotions to avoid financial and legal risks.

He said that the Foreign Exchange Regulation Act 1947 also does not support the use of these currencies and that online transactions in these currencies with anonymous persons or persons with pseudonyms may violate the law of 2012 on the prevention of money laundering.

India announced in February the introduction of its CBDC, the digital rupee, in the next fiscal year. The CBDC is a legal tender currency issued by a central bank in digital form. It is similar to fiat currency issued in paper and is interchangeable with any other fiat currency.

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