Binimoy to synergise financial systems, now need e-Taka for unforeseen benefits: ICAB 

Binimoy, an interoperable digital transaction platform introduced by the Bangladesh Bank, will bring synergy to financial systems, the Institute of Chartered Accountants of Bangladesh (ICAB) has said and called for introduction of central bank digital currency or e-Taka, according to a press release.

"Introduction of digital Taka can bring many unexpected benefits. For example, parents will be able to track where their children spent the money and prevent misuse of funds. The digital currency can also be programmed not to be used in certain transactions like ones in illegal drugs or arms trading," ICAB President Md Moniruzzaman said at a webinar on Thursday.

"Central bank digital currency first introduced in China. The People's Bank of China rolled out the digital version of physical yuan [e-yuan] that prompted both the European Central Bank and the Federal Reserve, among others, to consider the issuance of their digital currencies," he added. 

"The central bank digital currency or CBDC is simply the digital form of a country's fiat currency. CBDC has the potential to transform the informal economy into a formal one," Jamaluddin Ahmed, past president of the ICAB, said while presenting the keynote paper at the webinar. 

The legal aspects of central bank digital currency are important to consider. There are many issues on CBDC benefits, and risks policy consideration for Bangladesh, he added.

He further said banks for international settlement continue to promote information-sharing and collaboration between central banks on digital currency research and to further explore technological experiments that could facilitate interoperability and cross-border transactions, Jamaluddin Ahmed said.

Titled "Transforming Paper Currency to Digital: Taking from and Making of Central Bank Digital Currency", the ICAB-organised was attended by Salehuddin Ahmed, former governor of the Bangladesh Bank, Md Humayun Kabir, council member  and past president of the ICAB, Mohammad Abdur Razzaque, chairman of the Research and Policy Integration for Development, Maliha M Quadir, founding managing director, Shohoj Limited, and Khondoker Shakhawat Ali, visiting fellow at the BRAC Institute of Governance and Development. 

The most significant gain to be had from the introduction of "e-Taka" is that it will allow the government to track its fiscal disbursement for development and other functional services, speakers said and added e-Taka will prevent stealing and accumulating money illegally.

With the advent of multiple emerging technologies, we are on the verge of the information-driven Fourth Industrial Revolution (4IR). This revolution exposes new challenges as well as exciting opportunities. Only the countries with expertise in these emerging technologies can successfully meet the challenges and exploit the opportunities, the press release reads.