As said by the European Central Bank’s head ‘Christine Lagarde’, there are 80 central banks around the world that are in a quest of launching their native CBDC. She disclosed this while attending a press conference stating that it is their responsibility to make sure the availability of the digital currencies’ operation for the profit of the customers.
CBDC adoption and the struggling central banks
She further discussed that the existence of the CBDC could be in the form of banknotes. However, she denied the idea by asserting that this would be that much autonomous as the traditional banknotes are.
Lagarde revealed that she had the dialogues with the customers, and their majority responded to have their privacy safeguarded; however, they did not require the autonomy as they suspected the threat of anonymity.
A significant amount of studies has been done on the CBDC, including its beginning in China in 2014, and Sweden is in the lead role of discussions regarding the e-dollar, e-euro, and e-krona’s possible existing form.
The function of commercial banks to be the preservers of the deposits may be threatened in case of banks giving access to all and sundry via issuing money to respective commercial banks for its dispensation in the general public.
A bank app would be utilized to allow entrance to certain banks for operating on a particular digital currency. In this way, it is possible for digital currency to exist inside the banking system, and some banks can experiment with it through the launch of a wallet that would be a self-custodian.
Especially the coders should be allowed to publish the smart contracts on the blockchain of the bank for incorporating some extra profits to enable things like NFTs and automated finance, and it would necessarily include the formation of a blockchain to work publically however not administered by the public.
The ‘privacy concerns’ is a matter which cannot be properly handled by the central banks as they would have a comprehensive observation over all the economic activities. Such apprehensions can be tackled by providing the users with self-custodian wallets for generating their unique address on the bank chain and utilizing SPV (simple payment verification) wallets as done by Bitcoin.
The race between CBDC and other cryptos
Consequently, Bitcoin (BTC) and the digital coins of the banks would compete on a monetary basis, with flat coins being developed in a controlled quantity and BTC (Bitcoin) consisting of a predetermined supply.