The Central Bank of Uruguay will issue a digital currency

While public figures and bankers of large states reflect on the advantages or disadvantages of the digital currency, still not deciding to use them massively in the economy, in some less developed countries regulators are already working in this direction. Central Bank of Uruguay announced on November 3 in a press release on its website about the imminent launch of a pilot project for the release and implementation of digital currency in the country. The digital peso will be provided by the state, controlled by the Uruguayan Central Bank and by its nature will not be a crypto currency, explained in the report.

"This is not a new currency, it's all the same Uruguayan peso, only more technological. The digital currency will help reduce these costs, as well as increase the transparency of financial transactions.”- said the head of the Central Bank of Uruguay, Mario Bergara

The local state communications operator ANTEL will provide a technological platform for conducting the experiment, which will last 6 months and will affect 10,000 customers of the operator. Using a mobile phone registered in a special application, the participants in the experiment will be able to calculate both with each other and with organizations. The national payment system Red Pagos will help to bring cash to the digital account to the citizens of the country.

It is likely that this experiment will be closely watched by the central banks of other countries, for example, Russia, where not so long ago they also discussed the creation of their digital currency, the cryptoruble.

In addition, Bergard added that if the experiment lasts longer than six months, the physical money would not be immediately withdrawn from circulation. The process will be gradual.

Advantages of digitalization are undeniable: it is transparency of financial transactions, and savings in emissions, as well as the lack of need to replace worn bills and collect money. On the other hand, not all residents of the country will be able to switch to a new type of money, it will take time for training, addiction, and complete elimination of physical coins and bills can lead to the "extinction" of some professions and other inconveniences in the ordinary life of citizens.