Better Ways of Using Blockchain in CBDC Rollout to be discussed by Central Banks’ Board Members

August 19, 2020

As part of the OMFIF Digital Monetary Institute discussion on how blockchain and distributed ledger technology (DLT) benefit central banks’ plans of rolling out digital currencies, the virtual conference will be held on August 19, to be participated by board members and specialists of several central banks.

Ways to Better Merge DLT and CBDC; the topic for Virtual Discussion

The Senior Fintech specialist from the Bank of England – Simon Scorer, IT Team Manager from ING Nederland – Cees Van Wijk, and the Chief Digital Officer from Magyar Nemzeti Bank – Aniko Szombati are scheduled to speak in the upcoming virtual discussion.

The virtual discussion will primarily discover ways of assimilating blockchain-based solutions with existing systems, debate on DLT design choices, and the use of smart contracts for blockchain interoperability, enabling even flow of money across borders.

Analysts project a future where central banks will increasingly clasp emerging technologies like DLT to implement monetary policies.

From end to end of central bank digital currencies — which are issued not through public consensus but the express will of the bank of final appeal, there will be effectiveness and cost reduction in the supervision of the base money supply.

This will have a continuous positive effect, eventually contributing to ecological conservation since the digital emission of currencies isn’t as energy-intensive as the physical imprinting of hard cash.

Remarkably, the added benefit of blockchain’s high flexibility and transparency can be leveraged by central banks that are promisingly receptive to new technology.

CBDC Achieving Distinction

During December 2019, the president of the European Central Bank (ECB) – Christine Lagarde, confirmed that they would speed up the work of a task force team. She lectured that the ECB should be “ahead of the curve.”

The team is bearing in mind the input of all EU members, defining the purpose of the CBDC, and formulating technicalities.

Additionally, Lagarde also noted that the bank plans to play a role in cryptocurrencies but won’t hinder private-led creativities outside its sphere.

Ahead of the team in China. Lately, a report stated that the PBoC digital yuan would be directed in more cities. The declaration came only a few months after the assumption of a successful closed-trial program with several state-backed commercial banks.