Central Bank Digital Currencies And How They Are Taking Over An Industry

• Central Bank Digital Currencies or CBDC are taking over the world this year even if it is only January.
• The WEF has published a paper called ‘The Central Bank Digital Currency Policy-Maker Toolkit’.

Central Bank Digital Currencies or CBDC are taking over the world this year, even if it is only January. The whole world of cryptocurrency is involved (to an extent) with central banks of various countries and are now looking into and researching ways to get involved with the digital revolution.

The WEF has published a paper called ‘The Central Bank Digital Currency Policy-Maker Toolkit’. This is said to assist the central banks in designing and launching their own digital currencies.

XRP, bitcoin and Ethereum are just a few cryptocurrencies that share things in common but are also unique in their own way. Much like these three cryptocurrencies, the WEF toolkit also has proposed different kinds of central-bank digital currencies, one of them being a retail CBDC. This was to constitute the first digitised form of a central bank and the liability that the general public could end up owning.

Whereas these retail digital currencies have said to be the next payment method, there are several risks associated with them - in typical cryptocurrency fashion. In addressing this, the document makes it clear mentioning network failures, operational risks and as well as other things. The document further adds that it must be protected from physical destruction of systems and infrastructure.

“For all forms of CBDC, as payments are integral to the economy, the central bank and policy‑makers must seek to enable the greatest degree of system availability possible, implementing safeguards and contingency plans that reduce risks to system interruption. CBDC system availability and continuous 24/7 access should be designed to consider people living beyond the reach of the internet or who do not have regular internet access; this is essential for refugees and people living in remote settings.”

It will be interesting to see how this plays out. For more news on this and other crypto updates, keep it with CryptoDaily!