{"id":1308,"date":"2021-02-05T11:56:39","date_gmt":"2021-02-05T11:56:39","guid":{"rendered":"https:\/\/adavault.com\/?p=1308"},"modified":"2021-02-05T11:56:41","modified_gmt":"2021-02-05T11:56:41","slug":"building-the-worlds-new-reserve-currency","status":"publish","type":"post","link":"https:\/\/dev.adavault.com\/index.php\/2021\/02\/05\/building-the-worlds-new-reserve-currency\/","title":{"rendered":"Building the World’s new reserve currency"},"content":{"rendered":"\n

Elliot Hill has recently published a really interesting Blog post<\/a> on Medium exploring how permissions-less blockchains may provide the best platforms for Central Bank Digital Currencies (CBDCs).<\/p>\n\n\n\n

He notes:<\/p>\n\n\n\n

Central bank digital currencies, often abbreviated to CBDCs, are digital analogs of fiat currencies, such as the US dollar or Japanese yen, issued at a state level. CBDCs can either be issued by a central or national bank or alternatively by government agencies, and they are being explored for\u00a0a number of use cases<\/a>.

Digital forms of traditional fiat currencies could pave the way for instant and cheap cross-border payments without the need for payment processors, and also expedite the interbank securities settlement process. They could improve anti-money laundering and know-your-customer requirements compared to cash-based currency. For retail users, CBDCs could also reduce banking costs, and therefore potentially increase interest rates and banking benefits.<\/p>https:\/\/medium.com\/cardanorss\/building-the-worlds-new-reserve-currency-do-cbdcs-really-require-a-permissioned-blockchain-980c7dc41c12<\/cite><\/blockquote>\n\n\n\n

In association with banks from around the world, the Bank of International Settlements (BIS), headquartered in Switzerland, laid out three key principles required from a CBDC:<\/p>\n\n\n\n