CBDC is the future of Paper Money

CBDCs function similarly to cash in your wallet, with the exception that they are not printed on paper. Every CBDC, like a piece of paper money, has a unique serial number that allows it to be tracked down. In contrast to conventional fiat money, every transaction is recorded in a computerized database. This makes it more difficult to launder money or fund criminal operations while remaining undiscovered. Many individuals are worried that their "real money" is being funneled into what they consider to be a Ponzi scheme, which is what cryptocurrencies are seen to be.

Despite repeated explanations, the majority of people still do not grasp what a blockchain is or how it allows CBDCs and cryptocurrencies to exist. Consider El Salvador's acceptance of Bitcoin as a national currency in September - not a CBDC, mind you, but a cryptocurrency. The Solana cryptocurrency, which was launched only days after El Salvador decided to adopt Bitcoin, was down for 17 hours. In no way does this represent a value judgment on the utility and efficiency of blockchains or cryptocurrencies in general. It serves as a modest reminder that we are still in the early stages of revolutionary new technology.

Money's infrastructure is evolving, and we need to rethink how we organize society, which includes how we structure money as well. Digital currencies are effective, they reduce corruption, they are simple to use, and they are much simpler to regulate. The transition to digital money will not take place overnight, and there will be bumps in the road along the way. Nonetheless, anticipate being able to pay with an iris scan, a fingerprint, or the form of your face in the not-too-distant future.

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 ...

How will Blockchain boost trade in Africa?

Despite a regional economic slowdown in 2020, over a dozen African countries grew last year. Complicated trade rules and lengthy border processes stifle African economies. These long-standing issues need creative solutions. Blockchain is becoming more practical and scalable in developing markets. It has just opened a regulatory "sandbox" for innovative blockchain-based goods in Ghana. Standard Bank has joined Marco Polo, a trade financing network. Here are four ways blockchain may help African trade: 1. Customs The AU-EU trade deal is still in its infancy. Traditional customs bureaucracy prevents SMEs from joining global trade networks. This procedure can be automated and simplified, saving time and money. 2. Traceability Tracking cross-border goods correctly is critical for standard and certification verification. Already, blockchain is allowing ethical supply chains for a variety of African goods. Its open-source but secure design makes certificates easy to issue and verify...

This summer, the Fed will take another step toward creating a digital money

This summer, the Federal Reserve will publish a research paper that examines the possibility of a central bank digital currency. Multiple countries' initiatives in the central bank digital currency arena, most notably China's, have heightened debate about how aggressively the Fed should act. The Federal Reserve is pushing ahead with its plans to create its own digital currency, stating that a study paper will be released this summer that will go deeper into the topic. Despite the fact that the central bank did not announce any particular plans for the currency, Chairman Jerome Powell acknowledged advancements in payments technology and stated that the Fed has been "actively monitoring and responding" to those developments. In the statement, The proper operation of our economy requires that consumers have faith and confidence not only in the dollar, but also in the payment networks, banks, and other payment service providers that allow money to flow on a regular basi...

USFCX_US Foundry Exchange

Search This Blog