7 International Banks Issue New Paper On CBDC Implementation
The latest news reports, seven international Banks have teamed up to sign a Pen Paper on the potential implementation of Central Bank Digital Currencies (CBDCs). Some of the banks are reportedly getting to choose the components where they may align with or against the implementation.
According to the reports, the Bank of England, the European Central Bank, and the Bank of Japan are among the international group of banks that jointly wrote on the CBDCs. The new paper is the latest of the series of articles written on the policy and potential implementation of CBDC since 2020, according to reports.
The paper revealed that some of the banks in this group are already nearing a juncture where they would deliberate whether they want to proceed with their CBDC project or not.
This included points where they would decide whether to further invest in a particular design in terms of end-user choices, business prototypes, and technology while the decision on the issuance of the CBDC remains open.
Many Central Banks Are Not Ready To Implement A CBDC
Earlier this year, the Bank of England (BOE) reportedly issued its paper detailing its stance and progress on the digital currency. In the paper, BOE highlighted that the infrastructure required to issue a CBDC would cost it a certain level of commitment and expenditure which it is not ready to offer.
Furthermore, reports showed that the Central Bank of Canada has made progress with its digital currency. It is at the conversational level where it seeks public opinion on the potential CBDC. However, just like BOE, the Canadian apex bank is yet to decide when to implement its digital currency.
According to the joint paper, regulators and legislators have to maintain focus and continue to oversee the progress of CBDC projects. In addition, the paper stated that creating solutions to some of the existing legal problems concerning CBDC largely relies on national regulations.
The policy preferences and CBDC designs for each country would also go a long way in solving those issues, according to the paper.
Meanwhile, some states in the United States of America are already signaling movements to ban the use of CBDCs in their territories, even before any digital dollar implementation or framework is formed.
Florida, governed by Ron DeSantis is reportedly pioneering the movement against CBDC. He passed a law banning CBDC in the state’s law earlier this month. According to DeSantis, CBDC would rob citizens of their privacy while giving more power to the central government. While he actively fights the implementation of the digital dollar, he also urged other states to follow suit, according to reports.
US Presidential Candidates States CBDC In Their Campaigns
According to crypto speculators, the frantic debates on the launching of CBDC could easily seep into a campaign strategy. This is particularly true as some presidential candidates of the US 2024 election are already using their stances against and for the digital dollar to run their campaigns.
At the moment, many countries are still indecisive on the measures to take concerning the implementation of a CBDC. However, the bulk of the energy surrounding the launching of a CBDC seems to be emanating from central banks as they keep mapping out the possible utility cases and design of their potential CBDCs.
As stated in the joint paper, the central banks believed the CBDC ecosystem would consist of the private and public sectors. It stated that there are many business prototypes for CBDCs that offer different benefits and use cases to the public and stakeholders.
It added that they offer different user incentive packages and add dissimilar value to end consumers. Hence, the central banks need to have a sufficient understanding of the various models of CBDC before implementing any one.
The team believed that blockchain tech is possible to exist in the future even though they do not need it to operate the CBDC system. While it did not contribute to the paper, the Hong Kong central bank is currently test-running its digital currency, e-HKD, according to reports
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