When the time comes for digital money, we are witnessing significant innovations such as the implementation of digital or stable currencies privately. Currently more than 70% of the main central banks in the world, analyze the possibility of issuing a digital currency on a blockchain or Blockchain.

Emergence of Consensys and the CBDC

The Consensys project emerges with the creation of CBDC (Central Banking Digital Curriencies), which offers a variety of advantages regarding digital money transactions, playing an important role in advancing the digital asset revolution in a regulated way, with less risk, more accessible and assisting in making financial markets more efficient and more available to users worldwide.

The CBDC (Central Banking Digital Curriencies), in this sense, gives tools to central banks to be more effective, they are futuristic tools that will allow them to implement monetary policies motivated by the rise of cryptocurrencies and Blockchain technology, since from what we can see (especially in the last decade), possibilities of issuing and using new types of money have emerged, as well as the exciting form of assets and digital markets.

Likewise, we observe a very rapid evolution in economic geopolitics and its social environment, which has generated new expectations and therefore new (and more demanding) security requirements, also with regard to flexibility, payments digital and commercial media, ease of use and availability worldwide. CBDC could also simplify and reduce the cost of remittances between the beneficiary countries (called cross-border remittances) in the future, and in this way a network is created that allows interbank payments with more efficiency and security.

What is a CBDC?

CBDC (Central Banking Digital Courriencies) is a digital central bank, it is based on the Blockchain, which represents the new technology in the issuance of money in central banks, both at wholesale and retail level, offers some important advantages for central banks, as they could be a strong catalyst for innovation in financial services, providing viability in larger-scale payment systems in tokenized asset markets, offering security and low risks.

The widespread use of CBDCs, rather than private tokens, could also assist central banks in preserving their sovereignty over monetary policy in tokenized active markets.

Some benefits of CBDC

CBDCs offer potentially new tools for regulatory oversight and enforcement in cheaper cross-border remittances, improvements in interbank payment infrastructure, as well as innovation in retail markets. CBDC is also presented as a possible top-level replacement of physical or cash money as such, thus helping to alleviate the costs and risks associated with money.

Depending on how it is designed, a CBDC would support financial inclusion by providing large-scale, access to reserves, free of all risks. We see then, that Ethereum is one of the best technologies available today, to meet the technical requirements to constitute a CBDC. The important thing is that central banks realize how important CBDCs are as a truly innovative tool that is constantly growing and experimenting.

The Mercury Cash possibilities

Mercury Cash has been waiting for this innovation and has prepared internally at BDCaaS (Banking Digital Courriencies as a Service), so that once central banks implement digital currencies, our software is available and quickly used in the countries that implement these currencies. In this way, traditional banking is becoming increasingly obsolete, since in order to open an account you have to go to a physical agency, which currently no longer makes sense, existing technology and being able to do it via online in a transparent and secure, with software like the one offered by Mercury Cash.

The intention with this article is to give a clearer vision of the potential of advantages and challenges that a CBDC represents today, likewise, through a concrete proposal of a specific approach that encourages debate beyond the theoretical, with the definitive implementation of the CBDCs.

What do you think about this topic? What do you think the future of digital money will be?

If you want more information about our products and services, you can contact us or write your question at the bottom (comments section).

Image from Kolar.io via unsplash.com under creative commons license.

Leave a Reply

Your email address will not be published.