Jack Lee, the founding managing partner of HCM Capital, stated that China’s Central Bank Digital Currency (CBDC) is ready and launch can be expected within two or three months. He had an interview with CNBC, which was published earlier on 11th November, where he states that the People’s Bank of China will also be using the new cryptocurrency. He adds that it will further strengthen the oversight over capital flows.
CBDC Is Taking Pole Position
China’s new digital currency is ready to be launched and it will bring a wide plethora of advantages. For example, the Public Bank of China tracks cash movements with serial notes on the banknotes. Although it is working, it is not a very efficient and quick method for tracking, but with blockchain and digital currency, this can be accomplished more efficiently. This puts extra pressure on other governments to fund research in the same field.
Swiss state secretary for international finance Daniela Stoffel states “The pressure has been on for a while. Other governments now realise this is now actually really happening and that the questions and challenges that are implied in an e-currency are now real.”. She also added her concerns regarding the issues that are native to the blockchain with money laundering possibilities. In addition to that, she thinks that regulators should work with different startups, in order to find out and understand what can and can’t be done when it comes to solutions.
Eurocoin Suggestions
A report from Reuters on 5th November states that a draft document is issued by the European Union, which offers the consideration of digital currency. According to Reuters, if the document is passed in its current state, the situation could escalate into an EU regulatory campaign against digital currencies. The European Central Bank should also consider creating its own cryptocurrency, as suggested by the Finnish EU presidency via a draft. Maybe this new Eurocoin will be the answer to Facebook’s Libra. More information will be available in December.
Turkey Also Going Crypto
A new digital Lira currency could be coming to Turkey by the end of 2020. The country’s president Recep Tayyip Erdogan has directed the government to finish the testing of a national central bank digital currency. The new Turkey national blockchain-based currency is planned to be issued in accordance with the 2020 Annual Presidential Program.
Along with the new CBDC, the government plans to develop a platform that will allow instant payments with the digital Lira. This project will involve the central bank and the Scientific and Technological Research Council of Turkey. On top of everything, the inclusion of the new national digital asset in the 2020 Annual Presidential Program also dictates a rise in its adoption in the industry. In September, Turkey announced that they are planning to develop a national blockchain infrastructure in order to deploy a distributed ledger for use in the public administration.
Tunisia With a More Transparent Version of The Dinar
Tunisia is one of the first countries to actively start to migrate its national currency to a blockchain platform and enter the future of financing. According to a Russian news agency, Tass, in an article from 7th November, Russian ICO startup Universa will help Tunisia’s Central Bank to issue and manage the CBDC. The central bank also announced that the digitization of the Tunisian dinar is already underway and that the paper-backed digital currency will be issued on the Universa Blockchain.
Universa will also receive a percentage of all transactions that are carried out with the new e-dinar. The Founder and CEO of the company, Alexander Borodich, states that this form of a digital asset can not be considered a true cryptocurrency like Bitcoin is for example. The “e-dinar” will be state-owned and will have a real fiat currency backing. The blockchain will protect from counterfeiting and make the issuance cheaper and more transparent. Instead of just moving the whole currency to e-dinars, Tunisia will just create a 2nd one, and people can exchange their paper money for the digital asset, thus backing them with fiat. Borodich also states that he has expectation towards the operation of private banks in the face of this new technology.
Blockchain Technology Adaptation
As you can see, a lot of countries are starting to see the benefits of a distributed ledger technology. Although this is against the whole idea of cryptocurrencies to eliminate any third parties or governments from interfering, it is a sight for sore eyes. Adaptation of blockchain by major government organizations shows that there will be a future for this tech and that it is here to stay.