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What is a CBDC and why they are coming to YOUR Country

What is a CBDC and why they are coming to YOUR Country sooner than you think.

A central bank digital currency (CBDC) is a digital form of central bank money that can be exchanged in transactions between consumers, businesses, and financial institutions. It is designed to work alongside existing payment forms such as cash, cheques, and bank transfers. CBDCs offer the promise of being low cost, safe, efficient, and reliable for all users.

What is the BIS?

The BIS is the central bank for central banks and works with pretty much all central banks in existence. As of recent and continuing into 2023 the BIS has been focusing its efforts on facilitating the introduction of central bank digital currencies in countries around the world. CBDCs will allow governments and central banks more specifically to have more control over their citizens and the money supply. A CBDC opens up for the possibility of much more control over a monetary supply than what is possible with today's cash (fiat) based system allows for. For example a cbdc system could allow for a government to simply deactivate a persons wallet, freeze or take the funds within it, and block the wallet from performing specific actions. This is a very dystopian financial system.

What is a Central Bank?

A central bank is an institution, usually independent from the government, that is responsible for managing a nation's money supply and interest rates to ensure healthy economic growth. Central banks typically also set monetary policy, regulate private banks, and earn profits through currency trading activities.

CBDC vs Cryptocurrency

A CBDC uses blockchain technology to function, but this does not mean that it acts in the same way as a cryptocurrency such as Bitcoin or Ethereum. Cryptocurrency lets you have total control over your assets. Allowing an individual to be in control over there assets means that they are financially free. The BIS is working against a financially free global society.

Prudential treatment of crypto asset exposures

In general, Prudential regulations focus on ensuring that companies have adequate capital and liquidity to cover their regulatory and counter-party risk, as well as risk arising from certain activities related to investments in crypto assets. The new BIS report includes documentation that discusses how central banks need to hold cryptocurrencies on their balance sheet. This is a strange document to come across since this is seems to be the opposite of what CBDCs aim to achieve. CBDC are for the centralization of financial systems, yet buying cryptocurrencies will grow the opposing force of centralization. Mediating risk as shown by these documents shows how far cryptocurrencies have come in recent years in establishing themselves as forms of global decentralized payment systems.

Watch a recent video posted by Coin Bureau about CBDCs

Watch more videos by Coin Bureau here.

2025 and CBDCs

The BIS will be monitoring the release of regulation related to CBDCs - the elements of crypto custody standards will be analyzed over the next few years and adjusted as the crypto industry evolves. The BIS will be working closely with regulators around the world to implement CBDCs over the next several years.

 

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