Bank AI

Read

<div class="cryptonews"> 
 <p class="is-style-lead">According to Colombia’s central bank <a rel="noopener noreferrer nofollow" title="research" href="https://thebittimes.com/tag/research.html">research</a>, adopting a central bank digital currency (CBDC) is expected to have limited <a rel="noopener noreferrer nofollow" title="economic" href="https://thebittimes.com/tag/economic.html">economic</a> impacts, underscoring the importance of incorporating attractive attributes tailored to essential user segments.</p> 
 <p>The paper indicates that the central bank is still debating whether to issue a CBDC while acknowledges the potential benefits of <a rel="noopener noreferrer nofollow" title="implementing" href="https://thebittimes.com/tag/implementing.html">implementing</a> transaction constraints to regulate usage.</p> 
 <p>The&nbsp;working paper&nbsp;titled&nbsp;<em>“Expected Macro<a rel="noopener noreferrer nofollow" title="economic" href="https://thebittimes.com/tag/economic.html">economic</a> Effects of Issuing a Retail CBDC”</em>&nbsp;by Banco de la República, Colombia’s central bank, concluded that introducing a retail CBDC would not entail substantial macro<a rel="noopener noreferrer nofollow" title="economic" href="https://thebittimes.com/tag/economic.html">economic</a> <a rel="noopener noreferrer nofollow" title="risks" href="https://thebittimes.com/tag/risks.html">risks</a>.</p> 
 <p>The report further highlights that the most suitable design for Colombia’s economy entails a tiered architecture, potentially hybrid or intermediated through commercial banks, accompanied by predetermined holding and transaction limits.&nbsp;</p> 
 <div class="cn-block-related-link"> 
  <svg class="cn-block-related-link__icon icon" aria-hidden="true"> <use xlink:href="#"></use> 
  </svg> <span class="cn-block-related-link__prefix"> You might also like: </span> 2050: CBDCs, AI, and the uncharted path ahead | Opinion 
 </div> 
 <p>This architectural blueprint must also demonstrate robustness against diverse potential incidents while functioning as a non-interest-bearing framework. </p> 
 <p>Within this framework, the macroeconomic ramifications of integrating such a digital currency into the economy are predicted to be marginal, particularly concerning potential disturbances to financial intermediation and stability.</p> 
 <p>As elucidated in the study, the potential implementation of the CBDC offers an enticing avenue for risk-averse individuals who currently possess alternative cash-like instruments. </p> 
 <p>This shift could subsequently influence the demand for various financial vehicles, encompassing government bonds, commercial papers, and term deposit certificates.</p> 
 <figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"> 
  <div class="wp-block-embed__wrapper"> <iframe title="The Bahamas: The World’s First Digital Currency | F&amp;D Magazine" width="1020" height="574" src="https://www.youtube.com/embed/oFdiTFsknA8?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe> 
  </div> 
 </figure> 
 <p>The document additionally recognizes the divergence in motivations for adopting a CBDC among various governments. This distinction is apparent in instances like the Bahamas, where the aim is to facilitate seamless money transfers across islands. However, the motives underlying CBDC adoption might necessitate a more intricate assessment in different nations.</p> 
 <p>Consequently, while the potential for a CBDC implementation remains under consideration, experts emphasize integrating captivating characteristics tailored to essential user cohorts. This includes a suggested design incorporating transaction limits and omitting interest disbursements.</p> 
 <p>The report follows the June announcement of a collaboration between Ripple and Colombia’s central bank, focusing on a CBDC and the exploration of blockchain applications.</p> 
 <p>Following this partnership, Banco de la República, in conjunction with the Ministry for Information and Communications Technologies (MinTIC), could commence trials on Ripple’s CBDC-focused platform.&nbsp;</p> 
 <p>As the global competition for CBDC development intensifies, exemplified by pilot programs launched by China, Hong Kong, and India, the community anticipates observing which CBDC attributes resonate most with the population.</p> 
 <div class="cn-block-related-link"> 
  <svg class="cn-block-related-link__icon icon" aria-hidden="true"> <use xlink:href="#"></use> 
  </svg> <span class="cn-block-related-link__prefix"> Read more: </span> Bitfinex initiates P2P trading service in Argentina, Colombia, and Venezuela 
 </div> 
 <p></p> <span class="google-news-banner__label">Follow Us on Google News</span> 
</div>

Central Bank of Colombia research: implementing CBDC won’t tag significant economic risks

TheBitTimes

Other articles published on Aug 17, 2023

Did Celsius filing last year expose customer’s personal details? New report suggests ‘risk of ide...

World’s Largest Web3 Event TOKEN2049 Singapore Hits 300 Sponsor Milestone, Announces New Headline...

DeXe passes a security audit from Ambisafe

Singapore police seize $735m in money laundering crackdown

RIVN Stock Price Prediction: Rivian At The Verge Of Make Or Break?

UK FCA unveils guidelines for crypto operators ahead of ‘Travel Rule’ enforcement

Join our free newsletter for daily crypto updates!