Central Bank of Uruguay announces the release of a new digital currency pilot

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The Banco Central del Uruguay (BDC) announced on Wednesday that a limited number of users would help testing a mobile application for the transfer of funds.

Speaking at the event called "The Future of Money and the Financial System," BDC President Mario Bergara said that the digital currency would function as money that allows balancing between individuals.

Regardless of whether the digital currency will operate on a blockchain-based platform, it is still unclear, but central banks around the world, including in Canada and the UK, turned to technology during such tests.

Although no launch date was announced, the pilot is "pretty close" to launch, according to Bergara, with some technological aspects of the program that are yet to be completed.

"It will be a trial and error process, successes and failures," he said.

Central banks around the world have been exploring new ways of issuing their own digital currencies, including through distributed registers. Earlier this month, the Bank of England researcher published a blog on this subject, arguing that regardless of its underlying technology, the digital currency issued by the central bank would require "extraordinary" levels of sustainability for success.