On April 17th, Asia Times reported on this week’s World Bank and International Monetary Fund (IMF) Spring Meetings. The meetings were held in Washington, DC, where it was revealed that Afghanistan, Tunisia, and Uzbekistan are all considering the introduction of a Bitcoin bond.
The three countries believe that the introduction of a Bitcoin bond would ultimately help with critical sectors in each of their economies.
The bond in Afghanistan could end up tied to the $3 trillion lithium industry, taking on metals. Even though there is an expansion in the works to make up for the lithium shortage, the country is still fairly strict on their borrowing as a result of international restrictions.
Central Bank of Afghanistan governor Khalil Sediq reportedly told Asia Times that the solution could be found in cryptocurrency options, like Hyperledger Fabric. Through this utilization, it could be easier to access international markets.
The Tunisian central bank governor, Marouane El Abassi, also seems enthused about this idea. He has held a more modern opinion of blockchain technology and other technological advances, and he noted that there is already a working group discussing the reality of introducing a Bitcoin bond.
The governor state that both Bitcoin and the blockchain tech from Hyperledger provide “an efficient tool” that will help in protecting companies and individuals from money laundering, cross-border terrorism, and more. Tunisia has also recently been considering a digital version of their fiat currency, much like other countries.
In Uzbekistan, a Bitcoin bond would likely be linked to cotton futures, as Uzbek Ambassador to the United States Javlon Vakhabov said during these meetings. However, the IMF has mixed opinion about the Bitcoin bonds.
Managing director Christine Lagarde had urged the government to be cautious in any crypto asset, adding that the best choice to start off this process would be to create regulatory “sandboxes.” These sandboxes could then be used for financial technologies to be tested while under supervision.
As Lagarde sees it, the public is at the early stage of cryptocurrency that is much like when the telephone was introduced. Considering the progress since these machines first became a household necessity, it will be interesting to see how these countries contribute to the mass adoption of cryptocurrency.