- Soramitsu, a Japanese blockchain organization, has made a deal to organize research regarding feasibility study for CBDC in Vietnam and Philippines.
- Soramitsu has an excellent track record in development and stationing of CBDC solutions based on blockchain.
- Many other nations all over the globe are developing or have already developed their own CBDC.
A CBDC Study For Philippines And Japan
As per some recent reports, a Japanese blockchain organization dubbed Soramitsu has joined forces to organize a research with respect to CBDC viability in Philippines and Vietnam.
According to a local news outlet, this research will begin this month. The report says that a couple of nations and other Southeast Asian nations are revamping their CBDC attempts considering the increasing popularity of Chinese applications such as WeChat Pay and AliPay.
The nations, while combating dollarization, have started to show their concerns regarding increasing popularity of yuan as well as its virtual version, which is likely to infiltrate the market via these apps.
WeChat Pay and AliPay, both the applications are banned for use in Vietnam, but the citizens are still using them. It is believed that CBDC is going to make their national currency better and contribute to economic security.
The Japanese blockchain organization has a track record of stationing and developing the CBDC solutions based on blockchain. The organization also created one of the globe’s first CBDCs called Bakong. This was done to diminish the dependency of Cambodia on United States Dollars.
What’s Up With CBDCs In Other Nations?
Many nations all over the globe are exploring CBDCs, and many have even implemented this concept. Back in 2017, Russia made an announcement regarding the launch of virtual ruble, in hopes to diminish payment services cost, increase competition with monetary institutions, and offer convenience in payments to its locals.
Although the USA hasn’t shown that much interest in CBDCs, the Fed has shown some interest in it. It issued a report showing the perks and downsides of CBDCs.
Currently, a total of 9 nations have successfully implemented the concept of CBDCs. Out of these nine nations, 8 belong to the Caribbean. Only one African nation, Nigeria is in this list.
Nigeria’s e-Naira became the most recent nation to implement the concept of CBDC. It is the first ever African nation to do this.
As cash transactions are becoming rare, it is expected that more nations will evaluate the perks this concept holds, and the issuance of digital currency by central banks will escalate.
Source: https://www.thecoinrepublic.com/2022/06/24/soramitsu-will-analyze-the-utility-for-cbdc-in-vietnam-and-philippines/