Re:Central Bank Digital Currencies are coming
by danialtz on Sunday October 18, 2020 @02:57PM
(#24820212)
Accounts at central banks is only one model of CBDC, called Direct CBDC, which is to my knowledge much less preferred way than a hybrid apparoach (like what’s there today), for several reasons:
- managing a complexity of nation-wide banking for Central Banks is quite early at this stage, being a traditionally a government portion known mostly for policies and economics than cutting edge tech deployment.
- CBs want to keep stability, and breaking down a current model of banking by introduction of a new FIAT model is not one of them
There are key needs and major requirements additionally for the CBDC that are documented in the latest BIS and ECB reports.
“While the Eurosystem would always retain control over the issuance of a digital euro, supervised private intermediaries would be best placed to provide ancillary, user-facing services and to build new business models on its core back-end functionality. A model whereby access to the digital euro is intermediated by the private sector is therefore preferable.“
That sounds like a bank to me. But I guess it must be so that the relationship between the central bank and intermediary will be different.
I struggle to find the defining features of these CBDCs so that it is more than empty branding. I guess you might sum it up as “bringing the central bank and currency-users closer thanks to modern technologies”?
[0] https://www.ecb.europa.eu/euro/html/digitaleuro-report.en.ht...