As the world monetary system shifts away from dollar dominance and digital belongings achieve institutional acceptance, Bangladesh faces a selection: preserve its blanket crypto ban or cautiously embrace regulated digital belongings, CBDCs and blockchain-based monetary infrastructure.
Representations of cryptocurrencies are pictured on this illustration. Picture:Reuters.
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Representations of cryptocurrencies are pictured on this illustration. Picture:Reuters.
The world financial system is at present going via a structural change. As a result of of geopolitical fragmentation and uncertainty over commerce, most nations are at present searching for methods to diversify their foreign exchange reserves away from the US dollar.
De-dollarisation has allowed digital currencies to maneuver from being speculative investments to monetary devices utilized by sovereign states.
Furthermore, there was exponential adoption of cryptocurrencies round the world.
By 2026, about 559 million individuals, or virtually 10% of the web inhabitants, personal crypto globally, particularly in rising markets of the International South.
State adoption: Nations’ investments in crypto
Cryptocurrency has ceased to be an asset bought primarily by particular person buyers. As a substitute, 2025–2026 turned a interval characterised by sovereign acquisition of crypto – primarily Bitcoin – as an instrument to type strategic reserves, bypass conventional banking networks or use surplus power sources.
The US: In consequence of main coverage change in 2026, the US authorities created a Strategic Bitcoin Reserve and owns the largest recognized authorities crypto reserves (~328,372 BTC). President Donald Trump has even gone as far as to announce himself as the “Crypto President.”
El Salvador: Being the first nation to undertake cryptocurrencies as an official state forex, El Salvador declared Bitcoin authorized tender and one of its official nationwide reserves.
Russia: Underneath Western sanctions, Russia made the official transfer to crypto to allow worldwide commerce regardless of the blocking of dollar-linked programs like SWIFT.
Bhutan and Ethiopia: These nations follow “state-linked mining,” as they mine Bitcoin utilizing their surplus hydropower and flip home power into world digital currencies.
Pakistan: As early as 2025, Pakistan introduced its plan for a state-run strategic reserve of Bitcoin as a result of its excessive stage of retail adoption, ranked third in the world in the 2025 Adoption Index.
India and Vietnam: They use crypto extensively for transactions involving remittances, decentralised finance and financial savings safety towards devaluation of nationwide currencies.
Why Bangladesh ought to undertake cryptocurrency
Bangladesh at present prohibits decentralised cryptocurrencies from being utilized in the nation. Nevertheless, following the world development could present some vital macroeconomic benefits:
Price-effective remittances: Remittances type the lifeline of Bangladeshis. Blockchain technology-enabled transactions or stablecoins may also help convey down the price of transferring large sums by cash switch operators.
Abroad cost reception for freelancers: As Bangladesh doesn’t have PayPal, freelancers need to wrestle so much to obtain funds obtained from their purchasers abroad. The introduction of crypto will significantly cut back their troubles of receiving worldwide funds.
Simple cashless funds: The common populace can use crypto to make funds inside the nation safely and securely with charges a lot decrease than conventional cellular monetary providers.
Diversifying commerce settlements: Given the fixed pressure on international change reserves, utilizing digital belongings or stablecoins can allow Bangladesh to conduct enterprise in non-US dollar transactions with different nations.
Hedging towards world fiat inflation: As the US and Pakistan have performed, assigning a really small portion of the nation’s state reserves in Bitcoin as an funding could act as a superb hedge towards world fiat inflation in the long run.
Technological innovation: The growth of laws round digital currencies will encourage funding in blockchain expertise growth in Bangladesh and forestall mind drain of tech consultants to nations the place cryptocurrencies are extra welcome, corresponding to the UAE and India.
Challenges and methods to beat them
|
Problem |
Risk to Bangladesh |
Mitigation technique |
|
Capital flight |
Use of retail crypto to switch cash overseas will drain the nation’s international reserves |
Hold the ban on capital exports utilizing retail crypto. Solely permit the first-time implementation of crypto for nationwide reserves or a home central financial institution digital forex |
|
Volatility |
The excessive volatility of some belongings would break home companies if adopted for use in pricing |
Don’t legalise decentralised crypto as a way of cost. Solely use it for sovereign reserve belongings or for enterprise functions utilizing stablecoins which peg to different main currencies |
|
Felony actions |
The nameless nature of cryptocurrency wallets permits unlawful transactions |
Make it necessary for all licensed digital asset providers to have strict KYC and AML procedures that hook up with the nationwide ID system |
|
Lack of essential infrastructure |
Digital asset administration wants world-class cybersecurity to keep away from disastrous hacks |
Create the essential home blockchain forensic capabilities and collaborate with respected worldwide cybersecurity corporations earlier than any launch |
|
Electrical energy calls for |
Bitcoin mining could be very energy-intensive. Bangladesh doesn’t have further low-cost electrical energy like Bhutan |
Clearly ban mining of cryptocurrency by the state or massive non-public companies. Solely work on buying and settlement of digital belongings |
The world monetary system is modernising quickly. The US dollar is going through sluggish, regular competitors whereas digital belongings are being institutionalised by sovereign states for commerce and reserves.
Bangladesh’s present coverage of blanket prohibition dangers isolating its financial system from the subsequent era of monetary infrastructure. A prudent path ahead requires a phased strategy: acknowledging the extreme dangers of retail capital flight whereas aggressively pursuing a central financial institution digital forex and exploring the strategic use of regulated digital belongings for worldwide commerce settlement.
Syed Tawsif Islam is a scholar of mass communication and journalism at the College of Dhaka.
