Skip to content
Gadget Wave's Financial Powerhouse — Investing — Gadget Wave's Latest Tech — Explore Gadget Wave's Latest Innovations — Politics

Guatemala Explores CBDCs, US Promotes Cryptocurrencies

Guatemala ponders CBDCs but hasn't committed. Meanwhile, the US backs cryptocurrencies, fostering innovation despite CBDC reservations.

,   and  Administrator
1 min read
In the image we can see there is a broken wall on the ground and there are red bricks of the wall...
In the image we can see there is a broken wall on the ground and there are red bricks of the wall are on the ground. There is a car parked on the ground and there is a plant kept in the pot. There are buildings and there is a hoarding on the wall on which it's written ¨Bail Bonds¨.

Guatemala Explores CBDCs, US Promotes Cryptocurrencies

Guatemala is exploring Central Bank Digital Currencies (CBDCs) but has yet to reveal concrete plans. Meanwhile, the United States is actively promoting cryptocurrencies and blockchain technology, despite reservations about a CBDC.

Guatemala, while interested in CBDCs, has not announced any plans to create its own. The country's central bank does not regulate cryptocurrencies due to concerns about volatility and lack of control. Cryptocurrencies are not recognized as legal tender in Guatemala.

In contrast, the United States supports cryptocurrencies and decentralized digital currencies like Bitcoin and stablecoins. President Trump signed an executive order on January 23, 2023, to investigate and evaluate the risks and benefits of blockchain technology and digital assets. However, the U.S. has strong resistance to creating a CBDC due to potential privacy vulnerabilities and excessive government power. Instead, it promotes a regulatory framework that fosters the crypto industry's development.

Guatemala's cautious approach may lead it to miss out on opportunities offered by financial innovation and technological leadership.

While Guatemala considers CBDCs, it has not committed to any plans. The United States, on the other hand, actively supports cryptocurrencies and blockchain technology, promoting a favorable regulatory environment. Guatemala's hesitation may hinder its progress in the digital currency landscape.

Read also:

Related

Latest