The digital currencies of the central bank (CBDC) have seen significant progress in several nations of the world, and aim to become protagonists of the financial system. The Bank for International Settlements (BISIH) gave its approval to the projects, which represents a fundamental support on the global stage.
The agency assured that CBDCs are “necessary to modernize finances, ” and recognized that some 56 central banks around the world have started their own projects. The corona virus pandemic – and its consequent restrictions on face-to-face activities or services – has significantly boosted the role of online payments, which was an extra incentive to move towards new digital currencies.
Benoît Cœuré, director of the BIS Innovation Center, highlighted the importance of CBDCs, mainly because they maintain the sovereignty of central banks. Precisely, one of the greatest fears of national organizations refers to the decentralized nature of “traditional” cryptocurrencies or the force that private companies would take in the face of the massive adoption of private tokens.
“That is the place where governments do not want to be,” acknowledged Cœuré. For that reason, both bitcoin (BTC) and Diem (Facebook’s crypto project) are not endorsed by various governments. Adoption, they involve a cessation of government control.
The first official CBDC of the world and was launched and is e l “dollar sand “of Bahamas. The asset underwent a pilot test last year, and it began to be used officially a few months ago. China, however, is heading to launch a digital currency that – due to its magnitude and volume of operations – will surely become the most important in the world: the digital yuan.
On the other hand, the Central Bank of the European Union (ECB) is working on a digital euro , as well as the Central Bank of Sweden has already started tests for an “ e-krona ”.