Honduras and Guatemala study CBDCs, different approach from El Salvador

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Honduras and Guatemala planned to digitise the financial infrastructure of the country by following a different approach unlike El Salvador. 

When it comes to blockchain, then no one can ignore it’s potential. So most of the country’s central banks are planning to bring revolution in their financial infrastructure with the adoption of blockchain technology. Honduras and Guatemala became the latest ones to go with blockchain adoption. 

The central bank of Honduras and Guatemala got approval from the directors and now they will study on the blockchain based currency to develop their own Central Bank Digital Currency (CBDCs). 

Wilfredo Cerrato, Honduras central bank president, stated on this matter and said that their study on CBDCs is

“to determine the feasibility of conducting a pilot test issuing its own digital money or a central bank digital currency”

Also they added that the Central American Monetary Council will address them to adopt CBDCs and implement them.

So here Honduras & Guatemala will not adopt the way of El Salvador to adopt the existing crypto asset to make it legal tender. 

Banco de Guatemala, vice president Jose Alfredo Blanco, shared his point of view and said that they will only give the name for CBDCs “iQuetzal”. 

iQuetzal is a name of National Bird of Guatemala

Blanco also said that the Central bank is not ready to integrate the new Currency of CBDCs right now because there is a big need for more study on CBDCs. And also the team created for this study is only 6 month old. 

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