All major economies have been exploring #CBDC, #china being in relative lead with an operational wholesale CBDC, pilot phase though, but with ~450 Million users may not right to call it a pilot.
The impact on #cryptocurrency , #stablecoins will be interesting, two different worlds really but still connected by intent I believe.
In fact, there can be a major impact on the physical currency as well, central banks may compete with commercial banks if they decide to offer interest on CBDC or decide to distribute the currency themselves.
Personal rights of the user can take a hit, as CBDC’s will not be anonymous like the physical currency, they can be tracked electronically, governments will have a great motivation to track at least the bigger denominations.
CBDC are set to have a huge impact of financial inclusion as well, at least with the offline versions of the currency that can be stored on hardware wallets, available without a smart device or internet.
The impact on the tokenized world will probably be unprecedented, today you cannot use central bank currency to buy or sell digital assets like #nft as most of them are on blockchain and guess what, central bank money is not compatible with this minor thing called a blockchain. But once it get compatible, and where it seems, most of the central banks are going, it can be a real game changer.
I believe the financial technology industry and the banking industry better be ready, digital things are about to get a whole lot “regulated” and dare I say “centralized”.
Many countries has recently announced to go live with a #CBDC, most of them wholesale as early as 2023. Banque de France and Reserve Bank of India (RBI) are two such major economies. Digital #euro, #pound and digital #dollar may not be very far either.
The impact on #cryptocurrency , #stablecoins will be interesting, two different worlds really but still connected by intent I believe.
In fact, there can be a major impact on the physical currency as well, central banks may compete with commercial banks if they decide to offer interest on CBDC or decide to distribute the currency themselves.
Personal rights of the user can take a hit, as CBDC’s will not be anonymous like the physical currency, they can be tracked electronically, governments will have a great motivation to track at least the bigger denominations.
CBDC are set to have a huge impact of financial inclusion as well, at least with the offline versions of the currency that can be stored on hardware wallets, available without a smart device or internet.
The impact on the tokenized world will probably be unprecedented, today you cannot use central bank currency to buy or sell digital assets like #nft as most of them are on blockchain and guess what, central bank money is not compatible with this minor thing called a blockchain. But once it get compatible, and where it seems, most of the central banks are going, it can be a real game changer.
I believe the financial technology industry and the banking industry better be ready, digital things are about to get a whole lot “regulated” and dare I say “centralized”.