Central banks are so frightened by the rapid spread of anonymous and private cryptocurrency, which are ready to run their own digital money. At the same time, no head of the Central Bank fully understands, why the country needs CBDC
Instead of CBDC, you need digital "cash"
Economist, Researcher of the Copenhagen School of Business, Lars Christensen is confident that the Central Banks still do not realize why they need digital money (CBDC), which, in fact, will be equivalent to the usual fate currency. He reported this on his page on Twitter, where he outlined his vision in detail.
Join our telegram channel to be aware of the main trends of the crypton.
According to Kristensen, Central Banks seek to meet consumer demand for electronic money. During the pandemic period, electronic payments have grown several times, but not all banks were ready to process such a number of transactions. Kristensen believes that to solve this problem, the Central Bank's digital currency is not needed (CBDC). It proposes to use digital cash (CBD CASH).
The expert proposes to switch to a fully electronic system of calculations between users and banks. For this, every citizen, an entrepreneur or company must register its electronic wallet to which the bank funds will be received during a money transfer. At the same time, banks should not charge the commission for the translation or it should be practically zero. Users themselves can exchange electronic money on other currencies or cash them into ATMs.
Kristensen believes that the emission of electronic money must be controlled, so we can take the process of generating cryptocurrencies. But the amount of emission will be determined exclusively by the Central Bank.
Such an approach, according to the expert, will allow banks to improve the monetary policy of states, as well as reduce inflation by reducing the number of paper money in the turnover.
Banks will get a monopoly again
The monetary economist and historian George Selgin is confident that the use of the CBD Cash mechanism will give Central Banks an absolute monopoly on the market, and the introduction of electronic wallets will also help officials to control money, block user wallets.
At the moment, neither experts nor themselves have never come to a common opinion on the CBDC account. Nevertheless, the Central Bank is actively working on the development of digital currency, and some countries are already tested by the CBDC.
So, in Japan, they have already begun to test their own digital currency. A number of countries such as Turkey, Germany and others are actively developing.
The unconditional leader in this process remains China, which has already completed testing of digital yuan. Russia is still looking at CBDC and is in no hurry with the introduction of a digital ruble.
How will the Russian economy change, if CBDC is created and released to the market, read here.
The POST banks still do not understand why they need CBDC - an appeared first on beincrypto.