Costa Rica says CBDCs are irrelevant 

A growing number of countries all over the world are moving fast to roll out their central bank digital currencies in preparation for an integrated digital economy in the future. 

But while these countries are busy perfecting their digital currencies, one country preferred to go in another direction: Costa Rica. 

The country’s central bank, Banco Central de Costa Rica, has maintained its cautious position on digital assets, whether its cryptocurrencies or CBDC. But even with its cautious stance, it has not branded Bitcoin as illegal in the country. 

Crucial reminder

“Although the use of crypto assets is allowed in Costa Rica, people who wish to acquire these do so at their own risk and expense,” central bank president Rodrigo Cubero said.

In other words, citizens must realize that the government wouldn’t be able to protect them from the risks of entering into the crypto space. Citizens who may lose their fortunes from cryptocurrencies cannot seek legal help. 

That is why it is important to educate themselves first about the opportunities and risks of investing in cryptocurrencies. 

No crypto tax payments

While other countries are already allowing their citizens to pay taxes in cryptocurrencies, it is clear that this won’t happen in Costa Rica anytime soon. Cuberto said that the government has no plans to implement this policy, partly because of the cryptos’ high volatility. 

Also, one major reason why Costa Rica is not considering a CBDC for its economy at all is that the country already has a National Electronic Payment System (SNIPE) that is already accomplishing CDBC’s capabilities. 

Just like CBDC, SNIPE is a highly-secured and low-cost digital payments platform that is already serving the needs of Costa Ricans. 

That’s why instead of creating a CBDC, the government will instead integrate additional capabilities on its SNIPE to keep up with the rising demand and changing landscape of the global economy. 

Image courtesy of Cointelegraph News/YouTube

Source: https://bitcoinerx.com/blockchain/costa-rica-says-cbdcs-are-irrelevant/