Central Bank Digital Currency Under the Spotlight
A Central Bank Digital Currency (CBDC) (the digital form of a country’s fiat currency) involves the central bank of the economy in question doling out electronic tokens, instead of the usual process of minting coins and printing paper bills, whose intrinsic value is fortified by the faith and credit of the government.
There can be no doubt that recent years have seen the concept of CBDC’s explored with great intent by many global economies. Encouraged by the opportunity to revolutionize internal payments systems or seize a leading position in renovating the global payments infrastructure, many governments across the world are exploring the drivers and pain points of issuing a digital currency. While the majority of these are currently only in the prospective phase, a number of active trials have begun or concluded, with many more on the way.
While many citizens across the globe will be used to digital payments as part of the world’s march towards ironing hard cash out of the monetary system, CBDC’s have a key difference to a standard …
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