The Feds released a white paper about the CBDC

Making the dollar an official digital currency would provide Americans with more and faster payment options, but it would also increase financial stability risks and privacy concerns for those who live in the United States. However, a CBDC would be issued and backed by the government, which is not the case with most cryptocurrencies. According to the Federal Reserve Board, central bank digital currency (CBDC) has both advantages and downsides when used as a payment system in the United States. In addition, as the Federal Reserve points out, a CBDC might help to improve the domestic payments system while simultaneously maintaining its safety and effectiveness.

It is being considered by the Fed as an alternative to lowering or replacing safe central bank money, to encourage more people to use it. Instead of depending on commercial banks, consumers would be able to file a claim against the central bank directly. Thru an online form, the Federal Reserve will accept comments on the possibility of a digital dollar for the next 120 days. Some Democrats believe that a digital currency may be beneficial to the unbanked, and they want the Federal Reserve to issue CBDC accounts to individuals.

With the help of this tool, low-income households may be able to lower their transaction costs and increase their financial inclusion. CBDCs will improve the international standing of the dollar if they are adopted by a large number of countries.

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