- Environmental concerns around
Bitcoin have been well documented, but it is still the most valuablecrypto token in the world. - China has been testing a digital yuan for over a year now.
- Central Banks in India and the US are also exploring CBDCs.
Even as Bitcoin faces concerns about its viability as an environmentally sound cryptocurrency, a new report by
According to the
report, titled State-Sponsored Cryptocurrency, CBDCs will require a redesign of the traditional monetary ecosystem. And Bitcoin can help in five key areas — speed, security, efficiency, cross-border payments, and collaboration with other participants.
What would happen if we combined the best attributes of the technology of cryptocurrencies with the features of an established fiat currency under the sponsorship of a central bank? The result very well may just be a new method of handling payments that would revolutionize the current system. With the potential to reduce costs, reduce errors, speed the transfer of money, balance privacy with anonymity, and do it without the day-to-day operational need for a centralized organization, whether commercial or federal, the result could truly be transformational.
Except from Deloitte 2022 Report “State-sponsored cryptocurrency
The report also points out that the first government that rolls out a
Which countries are working on CBDCs?
So far, most central banks haven’t mentioned Bitcoin when it comes to issuing CBDCs. Currently, countries like India, the United States (US) and some others have been exploring the possibility of issuing CBDCs.
India’s Finance Minister,
