China establishing its digital Yuan as the foremost CBDC has forked the zeal among global central banks to come up with their own.
“CBDC rests on a value or a token-oriented approach. Tokenization unleashes a new format for currencies, securities, and other assets as digital bearer instruments. They allow transferability of value akin to sending a text and comprehensive programmability,” wrote Chowdhury over email.
“Digitizing the sovereign currency is sure to redress a series of national economic challenges, and advantage individual citizens solving practical problems. However, true benefits of decentralization may only be achieved when both the CBDC and private cryptocurrency are allowed to flourish. This implies the right balance of both the public and private cryptocurrencies will result in the desired outcome befitting a decentralized global economy.”