Breaking Barriers: Bangladesh’s Journey towards Crypto Adoption
Are you interested in knowing about Bangladesh’s journey towards crypto adoption? If yes, then you have landed at the right place. In this article, we will discuss the breaking barriers that Bangladesh is facing while trying to adopt crypto and how it is trying to overcome them.
Cryptocurrencies are digital or virtual tokens that use encryption techniques to secure transactions and to control the creation of new units. Bitcoin, Ethereum, Litecoin, and Ripple are some of the popular cryptocurrencies that are used worldwide. With the increasing popularity of cryptocurrencies, many countries are looking towards adopting them as a means of payment and investment. Bangladesh is also one of them.
Bangladesh is a country in South Asia with a population of more than 160 million people. The country is known for its textile industry and agriculture, but it is also trying to become a hub for fintech startups. Bangladesh has a large number of mobile users, and it is one of the fastest-growing economies in the world. Therefore, the adoption of cryptocurrencies can help the country to move towards a cashless economy and can also attract foreign investment.
The Current State of Crypto in Bangladesh
Bangladesh Bank, the central bank of Bangladesh, has issued several warnings regarding the use of cryptocurrencies. In 2017, the bank issued a circular stating that cryptocurrencies are not legal tender in Bangladesh, and anyone found dealing with them will be punished. The circular also warned banks and other financial institutions to avoid transactions involving cryptocurrencies.
Despite the ban, many people in Bangladesh are still using cryptocurrencies. Some are using them for investment purposes, while others are using them for cross-border transactions. There are also some startups in Bangladesh that are trying to develop blockchain-based solutions for various industries.
The Barriers to Crypto Adoption in Bangladesh
The primary barrier to crypto adoption in Bangladesh is the lack of regulatory framework. The absence of a clear legal framework creates uncertainty for businesses and investors who want to invest in cryptocurrencies. Moreover, the lack of awareness and understanding of cryptocurrencies among the general public also creates hurdles in the way of crypto adoption.
Another barrier to crypto adoption in Bangladesh is the lack of infrastructure. Many people in Bangladesh do not have access to the internet, which is essential for the use of cryptocurrencies. Moreover, the country lacks the necessary technical infrastructure required for the development and deployment of blockchain-based solutions.
Overcoming the Barriers to Crypto Adoption in Bangladesh
To overcome the barriers to crypto adoption, Bangladesh needs to take several steps. First, the government needs to create a clear legal framework for the use of cryptocurrencies. The framework should define the rules and regulations for businesses and individuals who want to invest in or use cryptocurrencies.
Second, there is a need for awareness and education campaigns to promote the understanding of cryptocurrencies among the general public. The government, along with the private sector, should take steps to educate people about the potential benefits and risks of cryptocurrencies.
Third, the country needs to invest in the necessary technical infrastructure required for the development and deployment of blockchain-based solutions. The government can take the help of private companies to develop the necessary infrastructure.
The Future of Crypto in Bangladesh
If Bangladesh successfully overcomes the barriers to crypto adoption, it can become a hub for fintech startups and can attract foreign investment. Cryptocurrencies can help the country to move towards a cashless economy and can also reduce the cost of cross-border transactions. Moreover, the adoption of blockchain technology can help to improve the transparency and efficiency of various sectors such as supply chain management, healthcare, and finance.
In recent years, some initiatives have been taken in Bangladesh to promote the adoption of cryptocurrencies. In 2018, the Bangladesh Association of Software and Information Services (BASIS) organized a seminar on blockchain technology, which was attended by representatives from the government, academia, and the private sector. The seminar aimed to promote the understanding of blockchain technology and its potential applications in various sectors.
In 2019, the Bangladesh government announced its plan to develop a blockchain-based remittance system to reduce the cost of cross-border transactions. The system will be developed in collaboration with the Bill and Melinda Gates Foundation and is expected to be launched in 2022.
In conclusion, Bangladesh’s journey towards crypto adoption is still in its early stages, and the country faces several barriers and challenges in this regard. However, with the right policies and initiatives, the country can overcome these barriers and can become a hub for fintech startups and blockchain-based solutions. The adoption of cryptocurrencies and blockchain technology can help the country to move towards a cashless economy, reduce the cost of cross-border transactions, and improve the transparency and efficiency of various sectors.