CDBC To Improve Economic Growth and Inclusiveness

In a recent report by the World Bank Group, the International Monetary Fund (IMF) and the Bank for International Settlements (BIS), the CBDC digital currency was touted and advertised in all sorts of ways.

A CBDC is a digital currency issued by a central bank. Thus,

a priori, it cannot be a cryptocurrency. These are analogs of fiats but represented in digital form. These are not even stablecoins. For example, the European Central Bank may offer a digital euro, and the American central bank may offer a digital dollar. However, these digital currencies do not necessarily have to use blockchain technology, as Bitcoin does.

The idea of the CBDC is that economic measures taken by governments can have a more direct impact on digital money in circulation. International transactions will also become much easier, because intermediaries such as banks are no longer needed to process them.

Indermit Gill, Vice President of the World Bank for Equitable Growth, Finance and Institutions, said:

“Faster, cheaper, more transparent and more inclusive cross-border payment services will benefit citizens, businesses and economies around the world, increasing economic growth, international trade, global development and financial accessibility. CBDC is a potential way to improve international payments”.

Currently, a number of countries have started testing, in which China is the leader.

What will be the effect of the appearance of CBDC? Let’s face it-deplorable. British columnist Edward Chancellor believes that this could “kill” Bitcoin and all cryptocurrencies. However, many investors do not seem to be thinking about the future, but are still interested in short-term enrichment strategies.

It’s just worth looking at what is happening in China and finding the strength to recognize that this is our beautiful and inclusive world of the future.