Will CBDC really a good solution for the global financial system?

Central Bank Digital Currency has been a talk of the town globally. Many have been thinking of the possibilities in using the said currency. They've been risking developing and piloting CBDC. But is it really the solution? Or will this just cause a problem in the global financial system?

Let's talk about the problems that may arise if one country releases a CBDC. Fraud and hacking is one of the common problems in digital financing. And it will not go away anytime soon. Countries who wish to establish a stable cbdc must have a safe system that cannot be interfered with by hackers. Countries deciding to release their own cbdc only think for the future of their people. But is it really a risk to take? Not all people can have access when it goes online or when the cbdcs are released. This can be very difficult for those people who don't have the resources to use digital currency.

But what if CBDC has an advantage? what will it be? The most common advantage of CBDC is that it is more accessible and easy to use compared to other kinds of currencies and payment. With the pandemic happening worldwide a less personal transaction can lessen the spread of the virus. And online transactions are very convenient to everyone. CBDCs can also be the solution to the unbanked problems of individuals. This will provide easy access to individuals' funds without the limitation of bank accounts.

Comments

To boost trade, Africa is simplifying international payment systems

It's hard to transfer money between African countries. The Ghanaian king settled a bill with a Nigerian attorney. His experience highlights a systemic problem impeding Africa's economic growth: high transaction costs and inconvenience. 15% of all imports and exports occur between 55 African countries. 60% of Asian trade is within Asia. 70% in EU. The difficulty of international payments hinders African trade. There are also high tariffs, long border procedures, and congested roads. Proponents of AfCFTA say easing trade restrictions will boost trade, FDI, and economic growth. 50 million people will be lifted out of extreme poverty by 2035 due to the accord's positive impact on real income, which is projected to rise 9.1%. Another issue: In Africa, currency values fluctuate. From July 2021 to 2022, Ghana's currency fell from 6 to 8. Volatile currencies make financial transactions more costly and risky. To overcome these problems, PAPSS facilitates financial transactions ...

A more accessible blockchain-based app dev in progress

Outside of cryptocurrency, blockchain has a lot of potential. Decentralized applications and distributed ledgers may soon be used by established industries such as finance, automotive, supply chain, and mobility. However, creating your own blockchain from the ground up is quite tough. Lisk co-founder Max Kordek discusses how to make decentralization more approachable. Blockchain's decentralized, tamper-proof nature has the ability to decentralize power and offer the collective hive more data control. Data from different manufacturers may be linked, and data from different vehicles could be shared. With so much money pouring towards asteroid mining and Mars expeditions, an interplanetary economy appears to be a foregone conclusion. Established businesses are less likely to have a say in the change than new entrepreneurs. When Bitcoin was first launched, the development ecosystem was "terrible," according to Kordek. He claims that developing on the open source and immutable...

Embracing blockchain as a tool for change

Blockchain technology is increasingly being employed in enterprises outside of the financial industry, and this trend is expected to continue in the future. By 2023, it is estimated that investment in blockchain technologies will reach US$16 billion per year on average. (Approximately RM68 billion). To put this in perspective, consider the fact that US$8.7 billion was invested in blockchain and cryptocurrencies in the first half of 2021. The Malaysian government is aiming to create a long-term environment for the country's technology and financial services industries in the next years. Founded in Singapore in July 2021 by Iskandar Investment Bhd as a wholly-owned subsidiary, the Ignite Global Innovation and Technology Exchange will be the world's first global innovation and technology exchange. In Malaysia, IIB Ventures Sdn Bhd is in charge of the development of the blockchain industry's ecosystem. This is why BV@M has set a goal of creating a blockchain ecosystem in Medini...

USFCX_US Foundry Exchange

Search This Blog