What is a CBDC?
1) Digital Currency.
2) Issued by the Central Bank.
3) Universally accessible.
It is central bank money, therefore a public form of money which is issued directly by the central bank. General purpose CBDC assumes access for households and businesses.
How do CBDC operate ?
At first the Central Bank`s Digital System will operate alongside other forms of money - cash, cheques, crypto currencies and the functioning of the banks.
There will be an account with the central bank of the person`s stored digital value. This account-based CBDC infrastructure would focus on a ledger with balances and transactions in CBDC.
The central bank manages the infrastructure and determines standards, security and solidity. Intermediaries (eg, PayPal, Visa) would be given access to the core ledger through Application Programming interfaces (APIs). Intermediaries could develop user-friendly applications with which consumers and businesses can make CBDC payments.
Payment functions such as identification, authentication, and validation could be performed by the private sector at first, then finally it will be controlled by the government.
Digital technology is becoming the norm in our society and the introduction of the Central Bank`s Digital Currency (CBDC) will just seem the next innovation. However, it will involve the whole structural reform of the monetary system and affect every person on the planet.
1) Digital Currency.
2) Issued by the Central Bank.
3) Universally accessible.
It is central bank money, therefore a public form of money which is issued directly by the central bank. General purpose CBDC assumes access for households and businesses.
How do CBDC operate ?
At first the Central Bank`s Digital System will operate alongside other forms of money - cash, cheques, crypto currencies and the functioning of the banks.
There will be an account with the central bank of the person`s stored digital value. This account-based CBDC infrastructure would focus on a ledger with balances and transactions in CBDC.
The central bank manages the infrastructure and determines standards, security and solidity. Intermediaries (eg, PayPal, Visa) would be given access to the core ledger through Application Programming interfaces (APIs). Intermediaries could develop user-friendly applications with which consumers and businesses can make CBDC payments.
Payment functions such as identification, authentication, and validation could be performed by the private sector at first, then finally it will be controlled by the government.
Digital technology is becoming the norm in our society and the introduction of the Central Bank`s Digital Currency (CBDC) will just seem the next innovation. However, it will involve the whole structural reform of the monetary system and affect every person on the planet.
