The cryptocurrencies supported by the central bank are the real future of blockchain activities?

From 2014 we discuss central banks and the issue of digital payment vehicles. The formal term, Central Bank Digital Currencies (CBDC) is at the center of most discussions, which the Bank for International Settlements (BIS) and the International Monetary Fund (IMF) are heading.

There was also a growth in the use of blockchain technology by central banks. The problem is that, for any progress, consumers must use blockchain technology and retailers must adopt payment systems to facilitate the process. At present, the way consumers use payment systems differs from country to country, making universal adoption difficult.

A look at Brazil

A research report published by R3 JP Koning assessed how it would be if the CBDC were to be issued by Brazilian banks. Analysts have examined the Brazilian economy and the structure of banking entities to determine if the approach is feasible.

The author of the study also questions the three types of systems that can work in a CBDC environment: central bank accounts, dash-like digital tools, and a combination of both.

Considering innovation

The teams that manage the development of a digital central bank have turned to blockchain technology. In a white paper published by Project Jasper & # 39; s Phase Three, which is a collaborative effort among the various banking entities, the review focuses on wholesale payments. These payments are similar to interbank payments and such an approach seems to be of limited scope, although they offer a number of strong long-term benefits.

Although it is useful to focus on wholesale payments, other areas are ideal for innovation, such as retail and consumer payment systems.

CBDC for consumers

At the third level, it is important to look at the CBDCs at the consumer level. It seems that more and more consumers are looking digital payment options as a viable approach. The trick, for those who are directing operations, is to grow digital solutions on the existing infrastructure of the financial market.

At the end of the day, however, the process takes time and a strategic approach.