Auto Draft

תאריך: אפריל 25, 2022 | קטגוריות: קידום אתרים

Technology continues to transform the ways of how people do their jobs, live, and save, central banks across the globe are making efforts to redesign their local currency to be more digital in their approach. In the present, the United States has signaled "urgency" to find an electronic version of its currency through a Central Bank Digital Currency, also known as CBDC.

The executive order signed by the president Joe Biden regarding digital assets was issued on Wednesday. It includes "placing urgent on the research, development, and issuance of a potential United States CBDC," according to an fact sheet.
China is the second largest economy according to gross domestic product, soft-launched its digital renminbi currency in January. The CBDC has more than a hundred million users. Around 100 countries are considering CBDCs on one level or at another, International Monetary Fund managing director Kristalina Georgieva said during remarks at the Atlantic Council think tank last month.
"We are now past discussion of CBDCs as a concept and we are now in the phase of experimentation," Georgieva said. "Central banks are getting comfortable with digital currency and are experimenting."
CNN Business' finance chair at New York University Stern School of Business David Yermack stated that it's now "inevitable" the entire globe will be able to issue currency exactly the same way. In the United States, the pandemic has prompted demand for cashless payment methods. Many Main Street investors have embraced cryptocurrencies like bitcoin and ethereum, putting pressure on the federal government not to fall behind on the trend.
The Biden administration is now placing more emphasis on innovation using American money. Here's the information regarding the possibility of a CBDC.
What is the Central Bank Digital Currency? And what is its purpose?
CBDCs can be described by the Federal Reserve as "a digital currency that is freely available to the public". The Fed holds the funds, and not the commercial banks, as a liability. This is the reason CBDCs differ from other digital cash forms that are held in bank accounts. This means that it will not be an investment in cryptocurrency or an account in your PayPal however, it would be an actual US Dollar that is digital.
There are a variety of opinions about the way this could be implemented and what it should look like, but in theory it may reduce the requirement for third-party processors when transferring money.
CNN Business interviewed Sarah Hammer from the Stevens Center for Innovation in Finance at the University of Pennsylvania. She said that the CBDC was just digital currency. It will be based on the currency that is fiat in the country. The money supply would then be used to implement the plan.
Yermack has studied the rise of digital currencies in recent years, and has concluded that CBDC could "actually function an awful lot like Bitcoins or other cryptocurrencies."
"You'd have the system of wallets probably owned by members of public, that could pay each other directly without needing to use a third-party," Yermack stated.
Hammer believes that the biggest tech decision for policymakers is whether or a US central bank's digital currency is based on Blockchain technology, the technology that underpins Bitcoin. It would put the weight of the federal government behind this emerging tech.
Hammer said, "It can either be managed by central databases or through distributed ledger tech or the blockchain."
The Federal Reserve Bank of Boston and the Massachusetts Institute of Technology published joint research in the last month regarding the CBDC study known as "Project Hamilton." According to a announcement from the Boston Fed, the blockchain technology was utilized and produced it produced the "one code base capable handling 1.7million transactions per second" result. This was significantly higher than the goal of 100,000 transactions per second the researchers originally set out to achieve. The statement also stated that Project Hamilton "focuses on technological research and experimentation, but does not intend to develop a practical CBDC to be used in the United States."
Yermack However, he said it's "likely that whatever they're working with will be the thing that the Fed takes and attempts to scale up."
The digital yuan from China is not based with blockchain technology. The digital currency is intended to replace cash-based payments and is accessible via an app supported by the government along with Tencent's WeChat. It uses existing tech infrastructure that is used by approuvé Chinese commercial and online banks and payment platforms. It is issued by the People's Bank of China.
What are the risks and the potential rewards?
https://blogfreely.net/cardanovezn947/bitcoin-your-quick-guide-to-the-most-significant-titles-in-crypto could be a cheaper more efficient, simpler and convenient option to the current options. Hammer claimed that CBDCs could decrease the requirement for cash, crack down on fraud transactions and make it easier to collect taxes and disperse specific government funds.
"There are some advantages to financial inclusion that come with having a central bank's electronic currency," she said, touting their ability to connect Americans that don't have bank accounts.
Yermack stated that there are a variety of risks to this, including security and tech concerns and privacy concerns. There are some who are worried about the possibility that it could take over work done by credit markets and commercial banks.
In cardano ada coin in January, the Fed identified cybersecurity risks that could be a threat. "Any CBDC infrastructure that is specifically designed to protect against cyberattacks would need be extremely resilient to attacks of this kind. Operators of CBDC infrastructure need to stay alert, as hackers employ increasingly sophisticated methods and techniques."
In addition an CBDC might threaten the independence of Fed and lead to a new set of policy questions.
Yermack declared that "the risk of political abuse was high." "If the central bank were given this power it would mean that the Federal Reserve would need more protections from the political world than is currently being used."
Yermack believes that a CBDC will require an "thoughtful and political rethinking" as well as a transition period for nations to experiment in the coming ten years. But, he believes there are numerous reasons to keep doing the work.
Yermack said that cash is not an option that people are drawn to. The desires of the general public push governments in this direction, too.

אולי יעניין אותך גם: