A Global CBDC System Requires Private And Public Sectors’ Cooperation – BIS
The BIS still aims to have a global CBDC and has issued a new paper with some selected apex banks. This new report is an update to the October 2020 report about the same issue.
An Update To An Earlier Report About The Same Subject
The previous information explained the basic principles and features of any CBDC. The central bank group also released three other reports about CBDC regarding the consequences of financial stability, user needs, national digital currency design, interoperability, and adoption.
This latest report concluded that a global CBDC system requires private and public sectors’ cooperation. They must make sure there is interoperability with the wider payment network. This cooperation will determine how soon and well the gap between digital assets and standard payment systems can be closed.
The report added that “interoperability is the key to a wider diversity, accessibility, and resilience.” The BIS seeks to keep uncovering CBDC issues, seek further public input and make the best decision regarding creating a global CBDC. Even though the central bank group admitted that the rapid development of the financial landscape could result in risks for the global CBDC, it said it is a factor they are also considering as they research and develop the global CBDC.
Some of the apex banks working alongside the BIS include Switzerland, Japan, England, and Canada. This report coincides with the launch of a blockchain interoperability initiative by the top digital payment processor, Visa.
The main objective of Visa’s blockchain is to be a one-stop platform for national digital currencies, cryptos, and stablecoins. Before Visa’s blockchain, Microsoft had bought the patent to a blockchain platform that utilizes several distributed ledger systems for the creation and management of tokens.
Stellar Blockchain And CBDC Issuance
The surge in the adoption of the stellar blockchain is impacting its governance token (XLM) positively. Some of the latest utility use cases of the stellar blockchain include the availability of automated market makers on the chain, integration of international payments option by Vottun (a Spain-based firm), and the partnership between the company and Spain’s development foundation.
Also, the stellar development foundation is now in collaboration with the DFS labs and would be pivotal to the latter’s inaugural Blockchain Bootcamp.
DFS’s SDF Tweet Announcement. Source: Twitter
You’d also recall that top North American national digital currency issuer, Anclap, was recently revealed as the technical partner for Peru’s CBDC. The firm disclosed that the technical support for the digital Sol would be provided by Stellar blockchain.
Anclap seeks one platform for stablecoin adoption across Latin America. Since there won’t be a shortage of partnerships for the stellar blockchain moving forward, the price of its governance token will likely continue to rise.
Famous crypto analyst, Kevin Cage, claims that XLM price has increased by x29 in the last 12 months and is recommended as a long-term asset. He also claims that XLM is likely to break out before the year ends.
Kevin Cage Tweet. Source: Twitter
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