The traditional market’s particular attention to the crypto space has forced many governments to create their own digital alternatives. In recent years, various jurisdictions have shown interest in central bank digital currencies (CBDCs) – digital versions of government issued fiat money.
With the ability to use blockchain technology to facilitate simplified fiscal policy, calibrate security features and even enable cross-border banking without bank details, CBDC continues to receive increasing attention from governments around the world.
Currently polls shows More than 80% of central banks are working on CBDCs, some of which are working on proof-of-concept applications that could eventually lead to a fully functional CBDC. Of the central banks surveyed, 10% plan to offer a retail version of the CBDC in the next 3 years and 20% within the next 6 years.
In Asia, these efforts are becoming more active with the fact that China is issuing the world’s first CBDC after setting up a task force in early 2014. By 2016, the People’s Bank of China The People’s Republic of China (PBoC) founded the Digital Currency Institute to develop a CBDC prototype.
Big banks in Asia have also shown particular interest in CBDCs. Proof that the central banks of Thailand, Hong Kong and China have partnered to develop digital ledger technology (DLT) for a CBDC prototype designed to bridge the cross-border divide.
This article gives a brief look at the growing CBDC projects in Asia.
