Bangladesh to conduct feasibility study to launch Digital Currency

Dhaka: The government of Bangladesh will conduct a feasibility study to launch the Central Bank Digital Currency (CBDC) in the country. The central bank of the country, Bank of Bangladesh will undertake the study on the possibility of launching CBDC in virtual transactions to encourage startup and e-commerce businesses. This was announced by the Finance Minister of Bangladesh AHM Mustafa Kamal in parliament during the presentation of the national budget on Thursday.

The Finance Minister highlighted the risks in the use of virtual currencies like the cryptocurrency but added that many countries are working to launch Digital Currencies as an alternative to cryptocurrencies. He pointed out that several countries in Asia like Singapore, Malaysia and India are in the initial phases of launching the Digital Currency.

Bangladesh has so far adopted a cautious approach to digital and cryptocurrencies such as bitcoin, ethereum and ripple. A number of people have been arrested for using such currencies in crimes. Bank of Bangladesh had issued a circular in July last year asking people to refrain from using these currencies to avoid financial and legal risks.