Post by account_disabled on Sept 16, 2023 10:28:30 GMT
domestic payments will be mainly used at first, and once the system is established and the CBDCs used in each country are connected, cross-border payments are expected to become possible. However, the most important thing for the success of CBDC is that sellers must accept it.
According to the Phone Number List Atlantic Council, CBDCs require a complex regulatory framework, including privacy, consumer protection, and anti-money laundering standards, and there is a need for stronger regulation before the technology is introduced.
Additionally, new payment systems may jeopardize the security strategies of countries that use them. “For example, it could limit US pressure to track cross-border flows and impose sanctions. “In the long term, the lack of leadership and standards could have geopolitical consequences, especially if China and other countries maintain a first-mover advantage in CBDC development.”
Steinberg agrees that a fully decentralized system is risky, saying, “Digital wallets can be electronically pickpocketed and transaction validity (consensus) can be spoofed. Of course, a properly designed system can be safe now and in the future. “But poorly designed systems can lead to widespread theft and fraud.”
According to a report by Juniper Research, the lack of commercial products related to CBDC to date and the lack of a well-defined platform for central banks to utilize are major constraints to the current market. “Currently, cross-border payments are expensive and slow,” said Nick Maynard, head of research at Juniper. However, this is not the focus of CBDC development. “Because CBDC adoption will vary greatly from country to country, it is important to connect cross-border payment networks so that more of the payments industry can benefit from CBDC,” he explained.
Juniper went on to note that for any CBDC platform to be successful, it needs a complete end-to-end financial network, including wholesale capabilities, digital wallets, and merchant acceptance.
According to Gartner Research, one of the challenges facing central banks is finding ways to enable CBDCs to add value to existing payment systems. Gartner said in a January report that the success of CBDC will depend on the “programmability” implemented by smart contracts. “To justify CBDC investments, developers are adding programmability to CBDC-based payment value chains. Therefore, bank CIOs must prepare for these changes,” he added.
For example, China's Chengdu Bank is using smart contracts to manage after-school activity deposits as part of its ongoing digital yuan (e-CNY) pilot project. Gartner explained that using e-CNY CBDC can reduce reliance on third parties when a refund is required due to a class being canceled or a student unable to attend.
Steinberg pointed out that countries such as Russia and China are aware that they will inevitably be affected by (US) sanctions due to their payment methods relying on US infrastructure and currency, and are developing alternatives. He then mentioned the mBridge project and said, “The country that deserves the most attention is China. Domestically, we must prevent all electronic payments from being transferred to technology companies. There are clear benefits to strengthening consumer surveillance. Overseas, we piloted cross-border payments with central banks in Thailand and the United Arab Emirates. “This is a concern at.
According to the Phone Number List Atlantic Council, CBDCs require a complex regulatory framework, including privacy, consumer protection, and anti-money laundering standards, and there is a need for stronger regulation before the technology is introduced.
Additionally, new payment systems may jeopardize the security strategies of countries that use them. “For example, it could limit US pressure to track cross-border flows and impose sanctions. “In the long term, the lack of leadership and standards could have geopolitical consequences, especially if China and other countries maintain a first-mover advantage in CBDC development.”
Steinberg agrees that a fully decentralized system is risky, saying, “Digital wallets can be electronically pickpocketed and transaction validity (consensus) can be spoofed. Of course, a properly designed system can be safe now and in the future. “But poorly designed systems can lead to widespread theft and fraud.”
According to a report by Juniper Research, the lack of commercial products related to CBDC to date and the lack of a well-defined platform for central banks to utilize are major constraints to the current market. “Currently, cross-border payments are expensive and slow,” said Nick Maynard, head of research at Juniper. However, this is not the focus of CBDC development. “Because CBDC adoption will vary greatly from country to country, it is important to connect cross-border payment networks so that more of the payments industry can benefit from CBDC,” he explained.
Juniper went on to note that for any CBDC platform to be successful, it needs a complete end-to-end financial network, including wholesale capabilities, digital wallets, and merchant acceptance.
According to Gartner Research, one of the challenges facing central banks is finding ways to enable CBDCs to add value to existing payment systems. Gartner said in a January report that the success of CBDC will depend on the “programmability” implemented by smart contracts. “To justify CBDC investments, developers are adding programmability to CBDC-based payment value chains. Therefore, bank CIOs must prepare for these changes,” he added.
For example, China's Chengdu Bank is using smart contracts to manage after-school activity deposits as part of its ongoing digital yuan (e-CNY) pilot project. Gartner explained that using e-CNY CBDC can reduce reliance on third parties when a refund is required due to a class being canceled or a student unable to attend.
Steinberg pointed out that countries such as Russia and China are aware that they will inevitably be affected by (US) sanctions due to their payment methods relying on US infrastructure and currency, and are developing alternatives. He then mentioned the mBridge project and said, “The country that deserves the most attention is China. Domestically, we must prevent all electronic payments from being transferred to technology companies. There are clear benefits to strengthening consumer surveillance. Overseas, we piloted cross-border payments with central banks in Thailand and the United Arab Emirates. “This is a concern at.