Uruguay is in the early stages of studying the implementation of digital currency as part of the restructuring process. Adolfo Salmiento, former manager of economic policy and markets, was reassigned to oversee the project.
Uruguay jumps to the digital currency bandwagon as part of the restructuring process
The Uruguay Central Bank is conducting a deep restructuring that includes an analysis of the implementation of potential digital currencies in the country’s economy. According to local media, the process did not reveal the reason behind the move when the institution began last August when it removed economic policy and market manager Adolfo Salmiento from his position.
Most recently, the bank reported that Salmiento’s removal is “part of new governance, following international best practices, involving the creation of Chief Economist status and general manager positions.”
Furthermore, the bank emphasized that the new structure consists of a new “mature stage of the administration’s operation” that requires “a fresh perspective for adjusting processes, approaches and capabilities.” Changes in banking structure respond to the push for modernization.
For this reason, Sarmiento, who has ample experience in the digital currency area, will be responsible for new projects including “analysis and evaluation of digital currency and final implementation in Uruguay.”
The Central Bank of Uruguay is one of the pioneers of operating digital currency pilots in Latin America, and in 2017 issued E-PESO, the digital equivalent of the Uruguay peso.
At the time, Central Bank Chairman Mario Vergara said the issuance responded to the costs of printing physical invoices, the difficulty of distributing these invoices across all regions, and the opacity driven by physical cash.
Nevertheless, the pilot was fired, no digital currency was issued and more than 66,000 businesses registered, including peer-to-peer transactions and payments.
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