CBDCs
Crypto adoption is making the Central Banks nervous
As digital currencies start to gain immense popularity among the masses, Central banks are scrambling for alternatives
“They came, they saw, they conquered.” That phrase is probably going to be used for cryptos in the not-so-distant future. Led by the premier digital coin Bitcoin, the cryptocurrencies have been on a rip in the past 12 months. I have written on previous occasions on how Central banks around the world have been considering issuing their CBDCs — Central Bank Digital Currencies.
Apart from smaller countries like Venezuela and the Bahamas floating their digital currencies — Petro & Sand dollar respectively, the most serious attempt to launch a CBDC by a major central bank has come from China. In fact, the Digital Renminbi is already being tested in various cities of the country as we speak. The southwestern Chinese city of Chengdu is handing out another $6M in the latest test of the central bank’s digital currency. This follows the trials already conducted in Beijing, Shenzhen & Suzhou.
Chinese interest in the digital currency space has accelerated plans of other central banks to issue the same — apart from the obviously increased adoption of the decentralized cryptos among the…
