Central Bank of Uruguay announces launch of own crypto currency

[Whitly]

Central Bank of Uruguay announces launch of  own cryptocurrency, lets discuss, what effect it will make for their economics.

[1714024320]

1714024320

[cryptodyn]

Would be good to have a link with this info.
Anyway if this is true, it is another good news for the cryptoworld.

[tomahawk9]

since OP didn't put a source, here's a link: https://www.coindesk.com/central-bank-of-uruguays-president-announces-digital-currency-pilot-program/

Central Bank of Uruguay announces launch of  own cryptocurrency, lets discuss, what effect it will make for their economics.

uruguay not big market not big bitcoin user
i think not big effect about bitcoin price, or economic in the world, only few effect uruguay economic, why only few , because bitcoin user in there not big

That's true but in the cryptocurrency world, this is big news. I don't think it matters wheather Uruguay has a big Bitcoin market or not, what's important here is that a Central Bank from Latin America is discussing the implementation of a blockchain-based cryptocurrency. I mean, a few countries from Europe or Asia could learn a thing or two from Uruguay, since they are the first country in the world to implement their own cryptocurrency.

I found more news about this but they are in spanish, but from what I could understand using online translators, the Central Bank of Uruguay is going to call it something like "digital banknotes" and starting this week people will be able to manage their funds on their smartphones by using an app from Google Store or Apple Store. And if i'm not mistaken, the public can also use an exchange (or a payment processor with physical stores) to convert their digital banknotes into paper money.

Only time will tell how big of an impact this will have in Bitcoin in that country.

[pugman]

Central Bank of Uruguay announces launch of  own cryptocurrency, lets discuss, what effect it will make for their economics.

Finally some one is trying to do something new here. Launching a crypto currency is not a problem, the problem is generation gap and the rich-poor divide. Poor people will find it very hard to get used to using crypto currency and rich have a lesser chance to find it harder to use. One more thing is that some people's ego will not let them use crypto, they will use fiat because they have been trusting it right from the birth.

[player514]

Central Bank of Uruguay announces launch of  own cryptocurrency, lets discuss, what effect it will make for their economics.

https://www.coindesk.com/central-bank-of-uruguays-president-announces-digital-currency-pilot-program/

I read about this here as well. It seems like a lot of it is up in the air for now; we don't have much information about the whole thing. However, this whole project would probably end up boosting the effect of cryptocurrencies on the marketplace. We may see a crypto that rises above bitcoin if something has enough traction and bitcoin drops low enough.

[Seansky]

Central Bank of Uruguay announces launch of  own cryptocurrency, lets discuss, what effect it will make for their economics.

It seems to me that they have just followed Russia and other's example to launch their own crypto. Their only problem is that poor people who cannot even afford to buy electronic gadgets of their own cannot use the crypto of their own country. Still, it will help them to ease transactions they do in their country everyday but it wont affect their economy greatly unless they use it as replacement for fiat.

[marcbitcoins]

Central Bank of Uruguay announces launch of  own cryptocurrency, lets discuss, what effect it will make for their economics.

I think if they just launch it, it need more time before we come out of some conclusions and speculations because we don't know if their coin will be acceptable in the trading market. No doubt their people will fully support it but still it will need the whole world support to determine its full potential in which most of the altcoins now are considered crap. If the world market will support this coins then of course it will benefits the economy of this country.

[TagaMungkahi]

They will open a lot of opportunities on their country because of opening their own cryptocurrency, they should have check out other coins on what have they become without the lack of community and support any coin will die, they should have smart developers who have experiences on creating and marketing a coin.

[Hydrogen]

OP's article: 

Uruguay is the latest country to see its central bank start experimenting with its own digital currency, according to statements.

The Banco Central del Uruguay (BDC) announced Wednesday that a limited number of users would help testing a mobile-based app for the transfer of funds.

Speaking at an event called "The Future of Money and the Financial System," BCD President Mario Bergara said that the digital currency would function like cash, allowing for balances to be passed between individuals.

According to a report from the Latin American Herald Tribune, he explained:

"It's not that you use the phone to order money transfers, as is done today, but having bills in the cellular and being able to pass them on from one user to another."

Whether the digital currency will run on a blockchain-based platform is still not clear, but central banks around the world, including those in Canada and the U.K., have looked to the technology during similar trials.

While no launch date was announced, the pilot is "fairly close" to launch, according to Bergara, with certain technological aspects of the program still to be finalized.

"It will be a process of trial and error, success and failures," he was quoted as saying.

Central banks around the world have been researching new ways of issuing their own digital currencies, including via distributed ledgers. Earlier this month, a researcher for the Bank of England published a blog on the subject, arguing that, regardless of its underlying technology, a central bank-issued digital currency would need "extraordinary" levels of resilience to be successful.

https://www.coindesk.com/central-bank-of-uruguays-president-announces-digital-currency-pilot-program/

...

From the text of the article, I would guess this test is being conducted to do cost assessments of blockchain versus traditional banking system technology. Its likely also being done to test transaction speed performance, security and other factors. It won't necessarily develop into a full fledged program where people in uruguay will be able to utilize crypto issued by their central bank. It may only be a real world test to determine if blockchain can be developed into a cheaper variant of traditional banking systems.

Conducting these tests in regions like uruguay serve as a buffer zone to prevent independent media from picking up details on how effective/ineffective the blockchain test was.

If anyone has seen the documentary "Who Killed the Electric Car." This crypto test in uruguay is similar to the General Motors EV-1. There are many parallels which can be drawn there.

[777Bitcoin]

OP's article:  
 ..........................
https://www.coindesk.com/central-bank-of-uruguays-president-announces-digital-currency-pilot-program/

Thanks for sharing the full article, I hope OP detailed his post with it.

So it’s now on the experiment stage, if it succeeds those data can be used by other countries in the world in creating they’re own. But I may have doubts to it, as most have said that Uruguay has small number of bitcoin users is this will affect the result or it was really planned in the end to fail. I would like to have updates about this. This would be better if my country will do the same as our bitcoin users are in big numbers.

[audaciousbeing]

Central Bank of Uruguay announces launch of  own cryptocurrency, lets discuss, what effect it will make for their economics.

Having read the article I don't see it as a lunch of their own cryto currency but an advancement of their payment and banking system because it's not even sure if they will base it on blockchain.

Even if they are launching I don't see it competing against rather as a way to send to the whole world that bitcoin has come to stay because if the blockchain can be adopted then bitcoin that relies on it is getting its basis which then mean those claiming that bitcoin is just increasing without any basis will have to start thinking otherwise.

[Kakmakr]

You asked about the economic impact of this decision :

~ People will slowly migrate from fiat currency to this "private" Blockchain. < less cash will be used >
~ Merchants has to change their systems to accept this currency. <changes = cost>
~ The government is going to print less money, but they will be manipulating the new digital currency. < changing coin cap >
~ People needs to be educated and provided with tools to access their currency. < like hardware wallets or APPs on a phone >
~ Regulations & laws needs to change to accommodate for this currency change.

These currencies will give governments full access to you wealth. They will be in charge of money supply and mining of your transactions. < They can block transactions or reverse them or even exclude them, because they are in charge of the technology >

Is this what you want?

[taiwww]

Digital currency is the future of all the economies of the world.
Its a great news, relatively small country like Uruguay is taking a big leap.
The Banco Central del Uruguay (BDC) said in a statement that they are testing their own digital currency transferable via mobile based application. Up roaring price of bitcoin making digital & crypocurrencies more and more popular.
Many countries are taking initiative to create their own digital currencies.
Banks of countries like Singapore, Ecuador, Tunisia , Senegal, Sweden, Estonia have already taken steps in this direction.
Some of these countries are likely to take it a step further and replace paper tender altogether.
A world without the FED and the Dollar and the EUR.

[lobo13hf]

Central Bank of Uruguay announces launch of  own cryptocurrency, lets discuss, what effect it will make for their economics.

There will be a value for uruguay own cryptocurrency. But if that was centralized coin and that will be the same with cryptorubble as the russia crypto currency. And i just that will not bring any impact to the crypto until the crypto currency will be able to trade into their own crypto. The more people will try to use the crypto that means the more automation in the various sectors of the country,
if this will be regulated currency and that can't be determined as bubble.

[FoxTheHuman]

Central Bank of Uruguay announces launch of  own cryptocurrency, lets discuss, what effect it will make for their economics.

I think this is a positive move from their country, I think the country has accepted the cryptocurrency as a big step forward.

[NUFCrichard]

Uruguay isn't a big problem for Bitcoin, but that countries are releasing Crypto could be.
What happens when the US releases its own Crypto and starts to crack down on other non-official coins?

It is the wild west at the moment, but I don't think it will stay this way. There are no other unregulated currencies that are heavily used, I don't Bitcoin will be allowed to be the only one for long.

When Apple or Google coin comes, it will be interesting.

[btc_angela]

Central Bank of Uruguay announces launch of  own cryptocurrency, lets discuss, what effect it will make for their economics.

Economics of bitcoin? No significant effect because Uruguay is not yet a big players in bitcoin market. But as far as their own economic situation? Maybe it will help them somewhat because it a government back crypto. However, expect high taxes on that since its government control. I believed that only rich people can bought every government back cryptocurrency, because you haven't heard casual or ordinary citizens buying mutual funds or local stock markets do we?

[Opquar]

Looks like every country is planning to realease its own cryptocurrency.

No one really knows for certain what effects that can bring to the economy. It has not happened anywhere yet, so there is no precedent. It is all speculation at this point.

[buwaytress]

That's true but in the cryptocurrency world, this is big news. I don't think it matters wheather Uruguay has a big Bitcoin market or not, what's important here is that a Central Bank from Latin America is discussing the implementation of a blockchain-based cryptocurrency. I mean, a few countries from Europe or Asia could learn a thing or two from Uruguay, since they are the first country in the world to implement their own cryptocurrency.

I found more news about this but they are in spanish, but from what I could understand using online translators, the Central Bank of Uruguay is going to call it something like "digital banknotes" and starting this week people will be able to manage their funds on their smartphones by using an app from Google Store or Apple Store. And if i'm not mistaken, the public can also use an exchange (or a payment processor with physical stores) to convert their digital banknotes into paper money.

Only time will tell how big of an impact this will have in Bitcoin in that country.

Digital banknotes isn't quite the same as cryptocurrency but we'll put it down to translation.

Yep, just because Uruguay isn't a big player doesn't mean that this event won't form ripples and counter effects. We've read about Bitcoin's emergence in South America due to the spiralling economy in Venezuela. I don't know the value of a central bank implementing a national crypto (it certainly is not the first to discuss, if all the news proves to be true, we might see the first pop up in Saudi Arabia or Russia), but the hype from that alone would surely set off a string of imitators in the region.

On the downside, I think it's bound to fail as a revival of economy. But it's an experiment anyway, so I suppose there's nothing to lose, only lessons to gain.

[Immakillya]

It's just their way to keep away their people's interest to Bitcoin. Anyway, it's better this way. Cryptocurrency is very popular right now and they can't control people from using cryptocurrency. There's a saying that, if you can't beat them, join them. I think that's what they're doing right now. They can't bet cryptocurrency. So they join and create their own cryptocurrency. Actually, China is going to create their own cryptocurrency.
http://www.investopedia.com/news/chinese-government-developing-its-own-cryptocurrency/?adtest=mobile-lazy-load-1
Also Russia and Japan is planning to create their own cryptocurrency.
https://247cryptonews.com/russia-is-issuing-the-cryptorubble/amp/
http://www.businessinsider.com/japan-plans-new-digital-currency-j-coin-2017-9