A Central Bank Digital Currency (CBDC) is a digital version of government-issued fiat money. As per RBI, “CBDC is digital legal tender issued by a central bank. It is the same as fiat currency and can be exchanged for it one for one.” The nation’s monetary authority or central bank regulates the CBDC.
CBDCs offer various advantages such as, traceability, transferability, convenience, accessibility and financial security, to businesses and consumers. CBDC, as a legal tender, has multiple use cases that promote the formation of a cashless society through the usage of technology. Policymakers, central banks and financial institutions are leveraging on this technology with the objective of financial inclusion and socio-economic benefits for all citizens.
Cryptocurrency and block chain technology have accelerated the transition towards digitalization and a cashless society. As a result, governments and central banks around the world are contemplating the use of government-backed digital currencies.
In a first, Montran Corporation and eCurrency Mint announced the successful integration of Montran’s Real Time Gross Settlement (RTGS) with eCurrency’s Central Bank Digital Currency (CBDC) platform for Bank of Jamaica.
Read the complete article on this implementation.