Skip to main content

Central banks doubt private cryptocurrencies and want their digital currencies

More and more people are thinking about making an investment in cryptocurrencies, which has sparked a discussion regarding the possibility of a central bank digital currency (CBDC). It's becoming increasingly common for governments to consider issuing their digital coins that are backed by their country's central bank or reserve. What's the point of doing so? Cryptocurrencies, such as Bitcoin and Ethereum, have proliferated in recent years. One of the primary reasons a central bank (such as the Reserve Bank of India) would consider creating its cryptocurrency is the lack of clarity regarding privately held currencies.

At a time when a debate over private crypto money was raging, the RBI made it clear that it opposed it and was considering developing its own. It is the Reserve Bank of India's goal to provide a secure, trustworthy, and convenient alternative to cash thru the use of blockchain technology.

Last year, the Reserve Bank of India (RBI) announced that it was in favor of starting with a simple CBDC model and then upgrading to a more advanced system based on the country's payment system architecture. According to the paper, monetary policy and the financial system will be unaffected if a simple model is utilized.

 

Comments

Post a Comment

Popular posts from this blog

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 ...
Post a Comment
Read more

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...
Post a Comment
Read more

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...
Post a Comment
Read more