OMFIF Updates on Central Bank Digital Currency Initiatives
Below are some featured pieces from the monthly OMFIF update on central bank activities related to studying the implementation of central bank digital currencies. I have pasted in video discussion that focuses on efforts underway in Asia for those interested in this topic.
Video: Central bank digital currencies and blockchain
Following technology breakthroughs by private cryptocurrencies, central banks are considering the use of distributed ledger technology and blockchain to develop their own digital currency. However, there remains much debate over the ideal technological infrastructure to operate CBDCs. This discussion addresses how blockchain could benefit CBDC. In cashless Sweden, for example, concerns about the marginalisation of cash are the main driver for exploring the potential of an e-krona.
OMFIF is pleased to welcome Algorand, a technology company dedicated to removing the friction from financial exchange, as the latest member of the Digital Monetary Institute.
Algorand joins other leading financial institutions and technology companies to help inform a range of discussions and research on the adoption of digital currencies by central banks
Added note: If you want to explore this topic in depth, you may want to visit the Digital Monetary Institute section of the OMFIF web sitehere. So far most central banks still are just in the evaluation process rather than any implementation process with the possible exception of China which is discussed in the video just above. Coming up in a couple of days will be an article that looks deeper into the effort by China to reduce dependence on the US dollar and bypass the SWIFT network.
No comments:
Post a Comment