Govt to examine possibility of establishing digital currency, digital bank: Finance Minister

Finance Minister AHM Mustafa Kamal on Thursday said the government will examine the possibility of establishing digital banks to expand and accelerate financial inclusion.

“It is to be noted that establishing digital banks is under either initial implementation or at experimental stage in various developed countries and some developing countries in Asia including Singapore, Malaysia and India,” the minister said while placing the proposed national budget for FY23 at Jatiya Sangsad.

Kamal also talked about conducting a feasibility study on the possibility of introducing (Central Bank Digital Currency) CDBC in Bangladesh.

He said, “As the risky use of virtual currencies such as Crypto Currencies continues to grow worldwide, many central banks around the world are working to launch digital versions of their currencies as an alternative to Crypto Currencies.

“The main purpose of launching Central Bank Digital Currency (CDBC) is to facilitate currency in virtual transactions and to encourage startups and e-commerce businesses. 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. In this context, Bangladesh Bank will conduct a feasibility study on the possibility of introducing CDBC in Bangladesh.”

Kamal also said once digital banks are established, massive employment opportunities will be generated for young IT workers.