Spotlight On Trend Of Central Bank Digital Currency

The renowned central banks and sovereign governments around the world have been sensing the essence and the opportunities of CBDC (Central Bank Digital Currency) foreseeing a swift transformation phase in the prevailing finance system.

European Central Bank (ECB) has recently divulged their intentions to expedite for a central bank digital currency (CBDC) upon consumers’ discomfort in cash transactions.

President, Christine Lagarde has also clarified again about their plan of action and reassessment of native digital currency (i.e. CBDC) in its road ahead.

ECB’s optimism for CBDC is not a new thing, soon after replacing Mario Draghi who carried dubious eyes on cryptocurrency space, Lagarde has constantly been active in functioning with member states' of central banks to assess "the feasibility of a euro area CBDC in various forms, establishing a task force in this regard is evident.

While the ex-chairman of CFTC (the Commodity Futures Trading Commission), J. Christopher Giancarlo, popularly known as “Crypto Dad” also, has setup a non-profit foundation to studying and promoting a digital US dollar.

Digital Dollar Foundation which is a multi-stakeholder initiative, has partnered with Accenture to launch the Digital Dollar Project or to advance exploration of a United States Central Bank Digital Currency (CBDC).

The initiative is a non-profit advocating the exploration of a US Central Bank Digital Currency (CBDC).On the new initiative, Giancarlo argued:

“The digital 21st century is underserved by an analog reserve currency, a digital dollar would help future-proof the greenback and allow individuals and global enterprises to make payments in dollars irrespective of space and time. We are launching the Digital Dollar Project to catalyze a digital, tokenized U.S. currency that would coexist with other Federal Reserve liabilities and serve as a settlement medium to meet the demands of the new digital world and a cheaper, faster and more inclusive global financial system.”

Elsewhere, China is playing their role as frontrunner in the digital currency space and state-backed stablecoin, PBoC Deputy chief divulged the Outlines of ‘DCEP’ (Digital Currency Electronic Payment, their native cryptocurrency). Huang Qifan, the vice chairman of the China International Economic Exchange Center, announced the name of the digital currency to be launched by the People’s Bank of China, DCEP.

Now, the deputy chief, said: “The currency is not for speculation. It is different to bitcoin or stable tokens, which can be used for speculation or require the support of a basket of currencies.

Cambodia is going to be the next nation to gear up for the race of CBDC after reports of BoJ’s digital yen.

Bank of Japan (BoJ) executive Masayoshi Amamiya hints that the Japanese central bank is planning for digital currency eyeing on mounting demand. Although Amamiya promotes BoJ’s CBDC plans that seems to be eventual requirement, BoJ is unlikely to develop a CBDC immediately, as per the reports of Reuters.

The director-general of the National Bank of Cambodia, Chea Serey, divulges that the central bank of Cambodia is most likely to develop a digital currency by the end of Q1’2020.

The advanced era of FinTech has come up with the new trends and inventions, such as, Smart contracts & DeFi which seem to be lucrative prospects. CBDC and Stable coins are also no exception but most likely to hit the financial avenue by endorsing luring use cases of digital experience that enables flexibility, controllability of the financial as well as real assets, efficient trade finance & loans business and offer interest-bearing contracts etc.

  • Market Data

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.