Now Uruguay Builds a Cryptocurrency

Uruguay’s central bank is building a digital currency. Other central banks are doing the same thing. For many observers, the kind of digital currency that a central bank would build may have little to do with a bitcoin-style cryptocurrency.

For one thing, cryptocurrencies like bitcoin have caps so they cannot print unlimited money. And cryptocurrencies are not governed by central banks. That means the value of the money is market-based, not fixed by bankers.

Nonetheless, banks like The Banco Central del Uruguay (BDC) are trying to make their own digital currencies even if it may not bear much resemblance to something like bitcoin.

Bills will be created, nonetheless, that can be passed via cellular from one party to another. The project is not yet launched but could be shortly.

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