The governor of the Central Bank also announced that the first completely digital bank has been established in the country, approved by the Monetary Board
The central bank of the Dominican Republic is completing an analysis phase and exploring the nature, monetary impact, and functionality of issuing digital currencies, revealed its governor, Héctor Valdez Albizu.
He stressed that these would be digital currencies that central banks (CBDC) can issue, that they would be their obligations, originated and transferred by digital means, and that they would have the support of the issuing entities.
“Like other central banks, we are completing this phase and counting on the advice of the International Monetary Fund (IMF) and the support of the Center for Latin American Monetary Studies (CEMLA), together with a group of central banks,” Valdez explained. Albizu during a conference at the XXII Latin American Congress of Technology and Innovation (CLAB), organized by the Latin American Federation of Banks (Felaban) and the Association of Multiple Banks of the country (ABA).
He stressed that they agree with the Bank for International Settlements (BIS), that “A system based on central bank money offers a stronger foundation for innovation, ensuring that services are stable and interoperable, nationally and cross-border.”
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He stressed that this is the complete opposite of what is happening in the cryptocurrency market, which are highly volatile and speculative virtual assets, without legal support or guarantees, and many used in Ponzi schemes.
He added that this year cryptocurrencies have lost more than half of their value, and experts predict that they will continue to decline. He remembered that the central bank warned the public in 2017 and again in 2021 that operating with these assets is risky.
In another order, Governor Valdez Albizu highlighted that the Monetary Board approved and is already operating in the country the first fully digital multiple bank, with local capital. “This is a milestone in the history of the Dominican financial system, and I’m sure it won’t be the only one,” he said.
During his conference, he highlighted that as of September 2022, Internet Banking users in the DR amount to 5.9 million. 50 financial technology companies already operate in the local market, providing services in segments such as payments, personal and business finance management, alternative financing, among others.
