United States is unfocashed on CBDCs

In the United States, during many years, policy makers The Federal Reserve Bank has studied, debated and released several reports to the Federal Reserve Bank to create a “digital dollar” to the Federal Reserve Bank without reaching a certain course of action.

CBDCs are digital versions of traditional paper Fiat currencies supported by governments and have been released to promote economic Inclusion And extensive access to financial services with token payment efficiency. CBCDs improve monetary policy in global payment systems instead of declining cash use by increasing tokens and providing accountability and stability. They reduce the risk of financial instability arising from the manufacture of irregular private electronic payment equipment, such as memes/altcoins, token assets or stabilcoins, and corruption.

There are two types of CBDC. A retail CBDC is used by the general public, and a wholesale CBDC is specially designed for interbank payment and securities transactions.

Vivek Raman, CEO of Etherealize.io, which connects financial institutions to the largest, safe and open blockchain eco-friendly atheram ecosystem worldwide, told me:

,We do not believe that there will be a CBDC in the US under the new administration. A CBDC goes against the principles of decentralization and freedom, and it is better to have a market for stabelines and tokens.,

US CBDC Ban

On 16 January, President Donald Trump’s Treasury candidate, Scott Besant, who has since been confirmed as the 79th United States Secretary, strongly testified before the Senate Finance Committee. Oppose A CBDC starts in America. Citing privacy and economic concerns, “I have no reason for America.”

Following the announcement of Scott Besant, on 23 January, US President Donald Trump signed an executive order, officially prohibited the establishment, release, circulation and use of CBDC in the US. Rhett Shipp, CEO of Avant, an onchain stablecoin dollar provider, tells:

,In my opinion, CBDC will harm America as it will reduce USD utility by increasing sensorability and reducing privacy. Hugging stablecoins is a better way.,

CBDC development worldwide

The Atlantic Council monitored CBCD’s global adoption rate TrackerWhich follows CBDC development in 134 countries that make 98% of global GDP. So far, 66 countries are searching for CBDC, China carried forward. Only three countries including Nigeria, Jamaica and Bahamas have released them.

These countries are working on cooperative development of coordinated law to release CBDC and regulate distribution with the recommendations of international organizations (see: see: Globally investing in digital assets By Selva Ozeli, introduction, p. 2). Nevertheless, complex CBDC ecosystems – by incorporating central banks, commercial banks, payment service providers and technology vendors, have been extended by an array of cyber security challenges, data usage and privacy protection weakers, score IMF CBDC out of virtual handbook.

The world’s most used CBDC-e-CNY

China is taking a global edge in developing domestic and border paying networks through digital currencies. He began operating the CBDC E-CNY program in 2019 with 260 million wallet users in 17 provincial level areas, making it the most commonly used CBDC pilot in the world. According to Lu Lei, the Deputy Governor of People’s Bank of China- Central Bank of the Peoples Republic of China- June 2024, Digital Yuan of China has made a total transaction of 7 trillion yuan ($ 982 billion). The figure is about four times the 1.8 trillion yuan recorded by the end of June 2023.

This success of E-CNY is responsible for continuous efforts to increase E-CNY to expand the scope of retail and wholesale CBDC transactions of the Chinese government. The case of use to include payments for various services has been widely widened such as payment for public transport, income tax, stamp duties, and, recently, an electronic version Red packet (Hongbo), traditional Chinese method of paying money (“objective bound digital pay”).

However, China’s CBCD development efforts are not limited to the country. “In Asia and Pacific, central banks are already operating CBDC in China, India, Indonesia, Thailand, Singapore, Japan and Korea,” Explained Kanni Vignraja, United Nations Assistant General Secretary and UNDP Regional Director for Asia and Pacific.

According to Yifan Hi, founder of Red Date Technology, President Donald Trump is expected to influence any retail CBDC projects in the next four years to ban CBDC in the US. ” “But the thing is that I don’t think any country can develop a real retail CBDC in the next 10 years,” he explained to me.

Red Date Technology is a decentralized Cloud Infrastructure Company headquartered in Hong Kong, which has co-established two companies that are taking lead in global CBDC pilot programs:

• China’s blockchain-based service network (BSN), with government-owned firms and departments that combine various payment networks;
• Universal Digital Payments Network (UDPN) uses blockchain and smart contracts to create a decentralized message system and platform to enable cross-currency transfer and settlements of various digital currencies.

Last year, UDPN established a digital currency sandbox for central banks and commercial banks such as standard chartered and Dutash bank, to test how a retail CBDC system can work, including quota management, circulation and wallets. The system is designed to support a variety of retail and wholesale crossborr CBDC proof-off-concept (POC); Regulated stabecoin such as Paple USD, Paxos Dollar, USDC, Hedera, and Tether; Token deposits to intercote from different countries as well as purpose-bound digital payments.

Tim Bailey, Vice President of Global Business and Operations for Red Date Technology, explained to me in an interview:

,StableCoins and CBDCs are replacing digital payments, offering 24/7 transactions for businesses. Since payment migrates on-chains through rapid stablecoins and CBDCs, the need to support the emerging cross-chain payment rail is clear. The UDPN region has a trailblazer, which offers POC as a first step towards adding digital payments within the greater digital currency ecosystem. UDPN architecture allows us to integrate with virtually any digital currency system – whether it is CBCD, Stablecoin, token Deposit, or forces digital payments through the transaction node. It simplifies adopting digital currencies in a wide range of applications and reduces integration costs for financial institutions and central banks,

European Union wholesale CBDC initiative

The European Central Bank has been searching for CBDC in various capabilities since 2020, including a consumer-supporting retail-cross-disposal between digital euros and central banks.

In response to America’s CBDC ban, ECB on February 20 Announced It is expanding the development of its wholesale CBDC payment system to dispose of transactions between institutions to move towards an integrated token financial infrastructure in two stages. In the first phase, ECB will be Construction A wholesale CBDC platform. In the second phase, the ECB will integrate the CBCD platform with the system, such as the foreign currency exchange markets, so that CBDC, token deposits, and the assets of tokens are originally interconnected within a blockchain-based financial system based on a shared account-Bahi or can interfere with a suit of interconnected solutions within a blockchain-based financial system. This initiative will require integrated standards and rules, first at the level of eurozone, then perhaps for a greater harmony and integrated European financial ecosystem.

conclusion

Innovation center In the bank for international settlements, an international organization of central banks, CBDC continues to work with several countries on research and cross-border pilot projects, growing with increased interest by disruption caused by Covid-19.

William Quigley, a cryptocurrency and blockchain investor and co-founder.

,Each country will adopt the financial sector tokens and apply a CBDC at its speed at retail and/or wholesale level. It is incompatible that in the digital fiat currency in the US, CBDC is often criticized for probability concerns, possible threats to personal autonomy. But the reality is that it is unavoidable that the growth of privately issued digital assets and stabecrims will further disappoint commercial banking institutions and central banks as people adopt rapid tokens and other countries other than America.,

Except America, 19 of G20 countries -Argentina, Australia, Brazil, Britain, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkish, and Advanced phases in the development of the European Union. “There is good news for countries that are unfocused on CBDCs, it is always a market for old paper money and ancient coins,” said Ojgur Honak, the founder of the bank Costa auction House and the author of the Catalog, the author of the Costa Auction House and the author of Queen Elizabeth II paper money.