How Blockchains, Stable Coins and Central-bank Digital Currencies are changing the architecture of money!

Blockchain technology has matured rapidly in just a few short years.

Central bank digital currencies are now in active pilot programs by many central banks across the world.

Physical money is dirty and spreads germs and viruses the recent corona outbreak has lead to many nations exploring digital currencies at an excelerated pace.

Before Covid we were already moving to a cashless society. Uber and Lyft allowed us to get around a city without a wallet. Cashier-less stores with services like Amazon Go and Uber Eats. have wallet-less pay mechanisms and in many areas are becoming the new norm.

Today we have moved beyond the theoretical benefits of blockchain, to generating very real benefits and cost savings.

CBDCs offer substantial benefits for general purpose use, making them attractive to central banks around the globe .

Let’s explore the following benefits

• Providing a cash alternative.
• * financial inclusion
• * Linking payments to identity.
• * flexibility of the money supply

Providing a cash alternative

Money and financial transactions should move as easily as email. Tokenized currency’s such as Libra or central bank digital currencys (CBDCS) will be as easy as sending an email to a secure blockchain address or identifier .

Blockchain technology is crucial in enabling the tokenization of these payment assets, allowing for peer-to-peer transactions and distributed custody.

Financial Inclusion

Tokenized money and Central Bank Digital currencies are a perfect way to distribute Universal basic Income via a crypto token.

They also have an added benefit of low cost transaction borderless payments .

Governments could create specific tokens for universal health care , education and housing .

Payments and verification would all happen via Blockchain technology.

Linking payments to identity

Self sovereign identity using blockchain technologies. will enable a secure interoperable, and tamper-proof way to verify individuals greatly reducing fraud and illicit transactions allowing individuals to safely pay for goods and. services.

Flexibility of the money supply

Central banks will be able to create and destroy tokens keeping the money supply in balance with the needs of the economy.

Commercial banks will be able to create tokenized banks notes using fractional reserve banking in order to meet loan demands.

The bank will be required to Stake Central bank digital currencies in ratio to their bank notes in order to maintain their fractional reserve requirements.

The technical advances of the last decade have lead us to a world of new frameworks for moving money and information . Bitcoin, Ethereum, Ripple and the Libra Network have changed the future architecture of money forever!

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