CBDC as a driver for the development of e-commerce in states
What is CBDC?
Central Bank Digital Currency is a new form of central bank money designed to be used as legal tender in a state.
CBDCs represent the liabilities of the central bank, expressed in existing units of payment, which can serve as a method of payment and storage of value. Most of the projected CBDCs are for general use, although some are solely for bulk and inter-central bank payments.
Experts call CBDC one of the most important trends, shaping the future of public money in the next decade. According to a report by the Bank for International Settlements, as of early 2019, 70% of central banks were engaged in CBDC research.
What impact does CBDC have on the crypto market? And why will CBDC end private cryptocurrencies?
In fact, the opinion on the fate of cryptocoins against the background of the introduction of CBDC was divided into two camps:
- Large-scale implementation of CBDC will destroy cryptocurrency.
- The widespread adoption and distribution of CBDCs will add liquidity to the entire crypto market.
Currently, the number of private tokens is less than 1% of the total money supply in developed countries. The 10% line is critical — if it is overcome, entire industries and sectors of the economy will be able to function without going into fiat. The biggest obstacle and threat to the development of private tokens is not the prospects of launching CBDC and competition from them, but strengthening of AML / KYC norms and the spread of securities market regulation to the circulation and issuance of private tokens. This is about strengthening in the present moment, not in the future.
Nonetheless, the IMF is pushing for CBDCs to expand access to financial services, especially in poor countries where financial institutions are underdeveloped and not readily available. The population without banking services can receive a similar service electronically in their mobile phone or personal computer.
A strong competitive environment created by the factor behind the launch of their own CBDCs by major economies will begin to impact private tokens. To strengthen the market competitive position of CBDCs, states resort to external regulatory instruments — tightening and total application of AML / KYC procedures.
How does the CBDC catch up for cryptocurrency?
Experts see the possibilities of CBDC to oust private cryptocurrencies and introduce an alternative to fiat into circulation: a condition for this event will be the rhythmic work of central banks and their private partners to ensure the reliability, security and functionality of digital currencies.
Commercial activities using CBDC will require new platform solutions for customers. Barter Smartplace provides a convenient trading system capable of exchanging any type of asset, including “baskets” of currencies or “lots” of several goods.
With the launch of CBDC, we are ready to introduce such payment methods between users, but now it is difficult to talk about this, since almost all developments of centralized banks of their currencies are kept in the strictest confidence due to high competition.
Use your opportunity to digitize your assets and sell them at a high price with Barter Smartplace!
✅ All updates and news of the DeCo world and our platform are available in the telegram chat.
