Central Bank Digital Currency

It seems that 2020 can bring us the breakthrough, and the first CBDC can go live. Where else than in the e-commerce king of the world, in China. As the Chinese DECP (Digital Currency/Electronic Payments) initiative is almost 5 years old, even the completely state-governed financial system has (or had) many issues regarding the development of this huge project.  After postponing the implementation for many times, in May at many Chinese metropolis, like in Shenzhen and some parts of Bejing (where the 2022 Winter Olympics would take place) the E-Yuan is now ready to use.  Right now only some companies and users can access the system but its already working. I have to tell you that a country wide implementation or a user base increase is not even mentioned anywhere yet. Their hidden goal is probably to break the dollars hegemony in the worlds economy with this disruptive digital innovation. On the contrary, one of the biggest country in the world is doing no less than issuing a g...

In this article you will get to know what does Central Bank Digital Currency phrase really mean, why it is important and what can we expect in the future of this technology. I will try to be as clear as possible as but sometimes technical and economical phrases are required.  Central Banks have been considering to issue some kind of digital currency since the late 20th century. In the last couple of years the debate about digital currencies started the shift from a mainly theoretical and subsidiary topic to a realistic alternative of the current fiat money which can be introduced basically whenever a central bank is ready to take this huge leap into the unknown.  Why do we need it - a general overview What changed in the last century or so that we could be this close to a monetary evolution or even a possible revolution? There are a handful of reasons why we are closer than ever to CBDCs, like  Declining use of cash in the developed world, The financial sectors interest i...