Home Tech Tajikistan Join Hands With Fantom Foundation, Orienbank for Blockchain-Based Digital Currency

Tajikistan Join Hands With Fantom Foundation, Orienbank for Blockchain-Based Digital Currency

Fantom Foundation has said it has been enlisted by one of Tajikistan’s largest banks to develop a central bank digital currency (CBDC), which will eventually be deployed across the central Asian country. Fantom has signed a memorandum of understanding (MoU) with the OJSC Orienbank, making it one of the first blockchain projects globally to develop a CBDC solution for a national government. Orienbank and Fantom will be joined by the National Bank of Tajikistan to develop and run trials for the commercial and retail payment networks for a digitised version of Tajikistan’s currency somoni (E-SOM).

The three institutions will roll out the digital currency nationwide after completing a successful trial, Fantom Foundation said in a statement.

Given the rapid popularity of cryptocurrency, many major economies have shown an inclination to develop their own CBDC to contain the influence of privately founded and developed virtual currencies. But people from developing countries may find CBDC more useful because it may reduce the cost of remittances with fewer or no commission charged on them. According to data from the World Bank, remittance inflows to Tajikistan made up 26 percent of the country’s gross domestic product (GDP) last year. The Fantom solution reduces costs by eliminating intermediaries and transaction fees while accelerating payment processing and settlement. In Tajikistan, with large, unbanked populations, CBDC can encourage financial inclusion, said the statement.

Also, this deal cements Fantom’s position as a major player in public sector blockchain initiatives. Lately, everyone is talking about the merits of digital currencies, with some also citing the drawbacks and disruption it may cause to the existing system. So, people are approaching this technology with caution, primarily because it’s new.

In Tajikistan, Fantom’s CBDC solution will undergo a period of testing. Following the trials, the currency will be rolled out nationally under the sandbox regulation of the National Bank of Tajikistan.

Only El Salvador has given Bitcoin the status of a legal tender. With Tajikistan exploring ways to have its own, it would make it the second country with a digital currency being used for commercial transactions.

Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

Source link


Samsung 32-inch Ultra-HD Smart Monitor M7 (LS32AM700UW) Review: Productivity and Entertainment Combined

Televisions and monitors are often used interchangeably because of their similar hardware, but it isn't often that you come across a product that...

Billionaire Investor Paul Tudor Jones Says Bitcoin Is a Better Hedge Against Inflation Than Gold

Billionaire investor and philanthropist Paul Tudor Jones, who's been a vocal Bitcoin backer in the past has stated that the popular crypto-asset...

Russian Crypto Scammers Targeting YouTube, Google Researchers Warn

Google-owned video sharing app YouTube is riddled with phishing and crypto scams, researchers from the search engine giant's Threat Analysis Group (TAG) have...


Please enter your comment!
Please enter your name here

Most Popular

Supreme Court Uses Extraordinary Power To Acquit Man In SC/ST Act Case

<!-- -->The top court used extraordinary powers under Article 142 of the Constitution.New Delhi: Using "extraordinary powers" granted to the Supreme Court, it...

Delhi’s Annual Rain To Break All-Time Record

<!-- -->Delhi had recorded 773.2mm of rainfall last year (File)New Delhi: Delhi, which has already received 1,502.8 mm rainfall so far this year,...

Leopard Trapped In Drain Rescued In 6-Hour Operation In Maharashtra’s Wardha

<!-- -->A leopard which had fallen into a drain in a hospital in Wardha in Maharashtra. (Representational)Wardha: A leopard which had fallen into...

Facebook Will Fuel Further Unrest, Whistleblower Says

<!-- -->Frances Haugen said the social network saw safety as a cost centre. (File)London: Facebook will fuel more violent unrest around the world...

Recent Comments