Does Blockchain’s DLT hold the key to Central Bank Digital Currency Adoption?

Colleagues, we have written extensively on the propensity of central sovereign banks to issue their own cryptocurrencies. The US Federal Reserve and the PBoC appear to be on opposite ends of the adoption continuum. New research published by the OMFIF (Official Monetary and Financial Institutions Forum) and IBM point us to the Occam’s razor of CBCD adoption: Distributed Ledger Technology (DLT). Download the CBDC report here. Private sector ICOs continue to rise with no end in sight. While they understand that their underlying Blockchain technology likely has bugs and security vulnerabilities, financial institutions in particular – such as JP Morgan, Fidelity, BlackRock, etc. – clearly see the benefits of trans-border remittances, increased transaction speed and lower OPEX. In aggregate central bankers have major reservations on the security and dependability of DLT. The report states that the goal is to “construct a convincing RTGS replacement that can be properly benchmarked against existing systems and meet the high standards for security, robustness, efficiency and speed.” The PBOC is hiring staff to develop its CBDC as we speak, whereas the US Fed is cautiously assessing its options. Many other central banks are somewhere in between. Our prediction: By 2023, most G20 nations will have launched their own CBDC. Post a comment while visiting us today! Lawrence – Cyber Security Defender (https://cybersecuritydefender.blogspot.com/)