The Real Guide to CBDCs | Part 1

CBDCs relate “central bank digital currencies”in other words, the digital currencies of central banks. They are concrete proof of central banks’ interest in the digital world. Their conditions of release, their functioning and their potential are all factors carefully examined by the whole community. Here is a guide to CBDC, which allows you to understand everything from A to Z.

CBDC: what is it?

The CBDC are on the rise. A recent survey by the bank of banks, the famous Bank for International Settlements (BIS) revealed that 90% of central banks are planning to implement central bank digital currencies (CBDCs). This figure was already 80% in 2021. A development that speaks volumes. The example of the Bahamas, China or even the Eastern Caribbean thus seems to become more democratic.

But legitimate questions are emerging. What are these CBDC ? They threaten cryptocurrencies, such as stablecoins or the bitcoin (BTC) ? the potential of CBDCs connects directly to the idea of promote financial inclusion Worldwide. They therefore have many different applications, most notably such as heart of more efficient transactions And engines of economic growth. In this logical follow-up, a survey of over 1,600 financial institution executives around the world cited the use of blockchain for payments as a key efficiency factor. Just that.

A revolution in the monetary system?

Could CBDCs spell the end of the cryptocurrency market? This is what many experts say, but it remains difficult to sort out the information on this topic. The potential of CBDCs is increasingly discussed. And for good reason. Some come to think that they represent a real revolution of the monetary system. Economic fantasy or short-term reality?

You should know that the main benefits of CBDCs include:

  • A higher transaction efficiencywith reduced payment times.
  • The technological advantages of a decentralized blockchain operate in collaboration with a centralized authority. The latter directs the creation, confidentiality and distribution of the digital currency,
  • Financial inclusion through the elimination of costly third-party fees for cross-border payments and greater accessibility to payment channels.

Can these characteristics stimulate the economy? The answer is a big yes. Continuation of everything you need to know about CBDC in the second part of our guide.

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Founded by Marc-Antoine CAEN POLETTI in 2021, Alt Write SEO is a content writing agency specializing in cryptocurrencies, blockchain and NFT. It finds its roots in 2016 with the French cryptocurrency club, of which Marc-Antoine is the current president. Our mission is to support French-speaking crypto companies to make France the first crypto nation in the world.

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