The central bank of the Dominican Republic (BCRD) works, together with other central banks, to deepen the analysis of the monetary impact and functionality of the schemes for the use and commercialization of digital currencieswhich are not regulated in the country.
Héctor Valdez Albizu, Governor of the central bankhe commented during a speech at the XXII Latin American Congress of Financial Technology and Innovation (CLAB) 2022that for the country to have cryptocurrenciesfirst a regulation process must be exhausted, so that the production and issuance of the coins are carried out by digital means regulated by the Dominican financial system.
“Before moving on to the second topic of these words, I cannot stop referring in this forum to the digital currencies that could be issued by central banks, which would be their obligations, originated and transferred by digital means, and which would have the support of the issuing entities”, said Valdez Albizu.
He noted that, like other central banks, “we are exhausting a phase of analysis and exploring the nature, monetary impact and functionality of these schemes; counting for this with the advice of the International Monetary Fund and the accompaniment of the Center for Latin American Monetary Studies, together with a group of central banks”.
“Anyone who acquires this type of virtual asset, either as an investment or with the interest of using it as a means of payment, as well as anyone who accepts them as a form of payment in commercial transactions, will do so at their own risk”Governor of the Central Bank
Strength by regulation
Valdez Albizu dictated the conference “Regulatory trends in digital banking, information security, cybersecurity and financial innovation (Innovation Hub)”, at the event organized by the Latin American Federation of Banks (Felaban).
After explaining the phase in which the monetary entity is on the subject of accepting the use of digital assetsdetailed the reasons why the traditional banking system has been able to advance on digitization issues with lower risks and more guarantees.
In that order, he cited the 2022 annual economic report of the International Bank for Settlementswhich indicates that the monetary and financial system of the future should combine digital characteristics with trust in central banks, a position shared by the BCRD governor.
Valdez Albizu read some of the conclusions of the study: “There is a burst of creative innovation in money and payments, opening prospects for a future monetary system that continually adapts to serve the public interest. A system based on central bank money offers a stronger foundation for innovation, ensuring that services are stable and interoperable.”
Warns the industry
The governor of the monetary entity was receptive to continue analyzing all the variables that combine the market of digital assetswhich already has a presence in the country with ATM services that allow buying and selling virtual currencies, without the regulation of the highest financial authority.
“What is happening in the market for cryptocurrencieswhich are highly valued virtual assets volatile Y speculativewithout legal support or guarantees, and many of them used in Ponzi schemes, is that this year they have lost more than half of their value and experts predict that they will continue to fall”, contrary to what happens in the regulated market, he considered.
On volatility of the coinsthe central bank warned the public in 2017 and again in 2021 and 2022, specifying that operating with these assets is risky in their different perspectives.
“Any person who acquires this type of virtual asseteither as an investment or with the interest of using it as a means of payment, as well as anyone who accepts them as a form of payment in commercial transactions, will do so at their sole discretion. risk”, warned the governor of central bank.
