The Bank for International Settlements (BIS) has recently published its latest research on Central Bank digital currencies (CBDC).
Within this context, it found that countries currently Cryptosoft working or exploring a CBDC tend to have a high use of cell phones. In addition, they have a strong capacity for innovation.
As it is known, the Bank for International Settlements (BIS), was founded in 1930. It is a global financial institution, which promotes international cooperation. It is worth noting that it represents the central banks of more than 60 countries.
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Central Bank’s digital currencies
First of all, CBDC (Central Bank Digital Currency), is the acronym in English for digital currencies issued by central banks. However, a CBDC is a new type of legal tender that will expand the public’s digital access to central bank accounts.
BIS publishes information
In particular, the report suggests that the majority of governments considering CBDC are those with digitized and innovative economies. Additionally, the more advanced the economic climate, the smoother the transition to digital payments will be.
It is important to note that the vast majority of these governments are considering hybrid models. Because of this, it would involve cash-like payment systems. But, with private companies managing the customer service part.
According to the report, the actual implementation of CBDCs can be complex. Those nations where they can be developed quickly are those where current technological awareness is high. As a consequence, the issue would have an immediate beneficial impact.
In contrast, nations that lack technical expertise or have no major immediate motivation are likely to take much longer to develop.
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CBDCs are necessary
Undoubtedly, the digital currencies of the Central Bank (CBDC) are receiving more attention than ever. However, the motivations for issuing them vary from country to country. So do policy approaches and technical designs.
In this regard, the Bank for International Settlements (BIS) mentions the different variables, policies and designs, for the various digital currency initiatives. It focuses on three approaches, which are the digital currency proposed from China, Sweden and Canada.
Finally, the Bank for International Settlements (BIS) concludes:
„We must highlight the value of access to various means of payment. And the need for any payment method to be inclusive and resistant to a wide range of threats“.
Adding: „Central banks will continue to take a long-term view. They will carefully consider the role of CBDCs in a variety of possible future scenarios.
I say goodbye not without giving you this quote from Noah Gordon: „Technological progress has not eliminated the human capacity to make mistakes.