3 Ways To Implement CBDC

A lot of money at stake, it will take time.

1️⃣ Gradual (or) indirect approach

2️⃣ Direct approach

3️⃣ Hybrid solutions

Can start with Blockchaining Sukuk.

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Banking in 2020

(1) From Paper Money to Digital Currency

As blockchain technology is able to bring down borders of financial products as defined in the conventional way of doing things, it is a matter of:

How do we define money in the new paradigm?

(2) Data Is The New Oil

One of the capabilities of Blockchain and its practical applications would be to turn data into currency, something coined as datanomics – data + economics.

(3) The Dawn of Crypto Bank

Looking at the three phases of cryptocurrencies, we are now slowly moving into the stage of corporate currency implementation. CBDC is happening anyhow.

So, where is the big deal?

Blockchaining Sukuk

Blockchaining Sukuk, crypto is the future.

News from CoinTelegraph

As reported by Cointelegraph, information related to blockchain, cryptocurrency, and the banking industry within the past 48 hours at the time of writing:

Billing itself as the next step in the challenger bank concept, the all-digital account will allow multiple currencies, both fiat and digital, to be held in the same account- HODL, exchange, spend.

According to a Technical Assistance Report paper released Dec. 30, 2019, the IMF’s Philippines mission encouraged the central bank to start exploring the possibility of collecting data on these crypto exchanges for its macroeconomic analysis, particularly in regard to international financial flows using crypto assets.

A CBDC is a new type of legal tender which will expand the public’s digital access to central bank accounts, which is limited to commercial banks today. As a result, this tool will combine the digital nature of bank deposits with the classic advantages of cash in daily transactions. A key point to carefully consider, though, is,

To what extent is this the case?

Would the new currency take the form of a personal account at the central bank that can pay positive interest rates, or that of an anonymous digital token without interest, like classic cryptocurrencies?

The central bank’s tests are ongoing – while China has not yet set a formal release date for its CBDC, which will be the first state-backed cryptocurrency on the world stage, the Standing Committee of the 13th National People’s Congress in China passed the crypto law on Oct. 26, 2019.

It divides passwords at large into three distinct categories — passwords, common passwords, and commercial passwords — and aims to facilitate China’s transition to blockchain technology.

Mayo predicts that the financial sector is ripe for big advances over the next 10 years. That decade of thriving banks will be technology-enabled.

Following the announcement of plans for a national blockchain infrastructure, Turkey has seen steady growth in blockchain projects, both in the public and private sectors.

Turkey’s Istanbul Clearing, Settlement and Custody Bank (Takasbank) announced that its blockchain-based, physical gold-backed transfer system enables participating banks to transfer digital assets representing a quantity of physical gold.

This platform distinguishes itself from many similar projects in the world by allowing the use of blockchain technology to transfer digital assets based on physical commodities, not having any value of its own, and ensuring full compliance with existing regulations.

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It’s not a matter of “IF” Crypto will take on the financial world, but rather just a question of “WHEN”.

You can either get left behind or prepare to become mega wealthy, because getting in on the boom of a lifetime is how generational wealth is made.

Right now, the bond market is about 3 times bigger than the stock market. Government bonds make up a large proportion of the secondary market, with a total value of $22.116 trillion across the world as of September 2018.

And cryptocurrencies are going to replace it.

Without getting too deep, cryptocurrencies allow contracts to be written that do not require middlemen.

In September 2018, Austria became the latest government to successfully trial blockchain platforms to issue government bonds. The trial follows in the footsteps of the Australian and Thai governments, both of whom developed blockchain bond issuing platforms earlier this year.

J.P. Morgan has also tested a new blockchain platform for issuing financial instruments with the National Bank of Canada and other large firms, of which the Canadian bank issued a $150m one-year floating-rate Yankee certificate of deposit, with a parallel simulation of the issuance, using blockchain technology.

Image Source: Pixabay

https://cointelegraph.com/news/government-bonds-how-blockchain-can-beat-the-red-tape

https://www.jpmorgan.com/country/MY/en/detail/1320566740924

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So many things can be done.

So many problems looking for solutions.

The question is, what and how can we contribute?

We are NOT looking at creating millionaires or business tycoons, it should happened as a bonus, if any. We are looking at a more transparent and fair way of resources distribution, moving towards a moneyless society.

The thing can be as simple as feeding a family. A charity wrapped in dignity.

What the majority of people want is simply food on the table, a simple and happy life.

The fact that poor people survive is a solid proof of their ability. Instead of giving them fish, teach them how to fish – equipped them with the right knowledge, tools, and community support.

Imagine 1,000 new entrepreneurs with an average of only USD 200,000 in revenue per annum, that translates into USD 200 million flowing in the economic system. Do the maths for other figures accordingly.

It might be small figure to big corporate, but it means a lot to a country when such achievements lifted another 1,000 families from the poor.

Consider the ripple effect.

We need more meaningful tasks for people to accomplish. And we do have that long list of pending tasks. #UN #SDG #TheFutureOfWork

We can reverse engineer the current system where it goes wrong.

It can be done. It is achievable.

Images from MARC Rating Methodology document, Impact Bond Assessments by Milly Leong, July 2018.

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