Cryptocurrencies

Bank for International Settlements and Swiss National Bank want to test their CBDC by year-end – Cryptocurrencies

Swiss francs banknotes and red wallet with Swiss flag

The digital won should take its first steps in Korea in 2021. The launch of the digital yuan is imminent, as a Huawei Mate 40 suggests that natively accepts the crypto-yuan.

It is the turn of the Bank for International Settlements (BIS) and the Swiss National Bank (SNB) to test a CDBC.

Benoit’s favorite for cryptos

And to think that there is still some time, Benoit Coeure, executive within the Bank for International Settlements, warned the public against the use of cryptocurrencies. His position has changed a lot since then.

The BRI revealed a plan to test a proof-of-concept for their own CDBC by the end of this year 2020.

According to Heart, this proof-of-concept will discover the possible connections of a CDBC in the current payment system and monitor compliance.

Lshelter plans to collaborate with other central banks around the world – theHong Kong Monetary Authority and the Bank of Thailand at the top of the list – to test the effectiveness of CDBCs in a cross-border context.

After the principles, it’s time for the test!

The Swiss National Bank collaborates with the BRI for the launch of this CDBC.

The BNS indicated that a CDBC could facilitate the settlement of tokenized assets between financial institutions.

The BRI had already collaborated with 7 other central banks to define the fundamental principles necessary for all CDBC.

The report entitled “Central Bank Digital Currencies: Fundamentals and Key Features”Advocated the coexistence of CDBCs with existing currencies, with CDBCs to complement them.

A CDBC must also not compromise the financial stability of the currency area.

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Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

Will CDBC agree to cohabitate with Bitcoin (BTC)? The disappearance of cash is coming soon but before celebrating, a little reading on this detailed analysis of central bank shitcoins is recommended. CDBC will not have the skin of Bitcoin. The latter is a deflationary currency operating on the basis of a decentralized system, while state financial institutions will always retain control over the production of state cryptos – and they will certainly not deprive themselves of producing more and more while ignoring inflation. CDBCs will make it easier and more efficient for states to track every transaction of its users, completely ignoring the right to privacy of its population. And no ! Big Brother is not a myth.

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