The government plans to conduct a feasibility study in a bid to introduce Central Bank Digital Currency (CBDC) to facilitate currency in virtual transactions in encouraging startups and e-commerce businesses.
In that regard, the central bank will conduct a feasibility study on the possibility of introducing CBDC in Bangladesh.
Finance Minister AHM Mustafa Kamal said this while proposing the budget for the 2022-2023 fiscal year in the parliament on Thursday.
As the risky use of virtual currencies such as cryptocurrencies continues to grow worldwide, many central banks around the world are working to launch digital versions of their currencies as an alternative to cryptocurrencies, the minister said.
“The main purpose of launching the CBDC is to facilitate currency in virtual transactions and to encourage startups and e-commerce businesses,” Kamal said.
He also said that, as a result of the time-befitting steps of the present government, the coverage of the internet and e-commerce in the country has increased tremendously.
Earlier in July last year, Bangladesh Bank issued a circular considering that cryptocurrency bears financial and legal risks for its users. It asked the public to refrain from trading or assisting in any type of cryptocurrency or virtual currency such as Bitcoin, Ethereum, Ripple, etc.
Bangladesh Bank held a hostile approach towards cryptocurrency due to its link to money laundering, terrorist financing and other violations of the existing laws.
Moreover, in a notice issued on December 24, 2017, Bangladesh Bank said the Foreign Exchange Regulation Act, 1947 does not support the use of such currencies either and online transactions in these currencies with unnamed people or people with pseudonyms may violate the Money Laundering Prevention Act, 2012.
