Interoperability is the key to uncovering the future of CBDCs. Central bank digital currency (CBDC) is the digital form of fiat money. This inspiration has come from the Bitcoin concept. However, CBDC is very different from cryptocurrency and virtual currency. CBDCs are not issued by the government and they do not have the legal tender status declared by the government.
CBDCs is at the state of proof of concept and it is not in real time execution. Several Central Banks are studying this concept. China’s central bank is in the forefront of “DC/EP”: Digital Currency/Electronic Payments. Lot of countries like Sweden on e-Krona; Uruguay for Uruguayan Pesos; and similarly lot of pilot CDBC programs are in existence.
Ripple Inisghts have to state that CBDCs are bridging the gap in innovation in the global financial infrastructure. The gap will undoubtedly be fixed by the interoperability facilitated by the blockchain space.
CBDCs are an approach by the Central Banks to continue their sovereignty in the digital asset world providing for the good of the people from across the world.
The future of CBDCs and their influence in cross border payments have been recently studied by the National University of Singapore (NUS) and the Ripple’s University Blockchain Research Initiative (UBRI).
