Why are Asian central banks leading the charge towards launching Central Bank Digital Currencies (CBDCs)? And how will they create viable ecosystems? Apifiny Chief Business Officer, Josh Li, offered his insights in Finextra.
In his article, Advances in Blockchain Technology Are Driving Development of Central Bank Digital Currencies, Josh opens by stating, “‘Central banks are asking themselves a key question: “Are we ready for a Central Bank Digital Currency?’ A Central Bank Digital Currency (CBDC) is drawing closer for many nations: In a Bank for International Settlements (BIS) survey, 70% of responding banks said they are engaged in, or planning to begin, work on a CBDC.”
Noting that most CBDC’s have blockchain technology at their core, Josh talks about:
- The worldwide momentum for CBDCs, with serious studies and pilot projects throughout Asian nations including Japan, Cambodia, South Korea, and Malaysia. China is even further along.
- The benefits and technical challenges of launching a CBDC.
- Increased recognition for the need of an instant global settlement network, such as Roxe, for banks, central banks, and other ecosystem partners in a CBDC.