The World Economic Forum released a white paper series to showcase the implementation of cryptocurrency in various sectors. The first installment reports on cryptocurrencies and their potential for use cases in financial institutions, while the second highlights distributed ledger technology (DLT) revolutionizing online payments.
The “world economic forum ripple pdf” is a report that was released by the World Economic Forum. The report highlights CBDCs in its “White Paper Series.”
White Papers from the Digital Currency Governance Consortium
The World Economic Forum’s (WEF) ‘Digital Currency Governance Consortium White Paper Series’ is more than a mouthful. It’s a thorough examination of the issues that must be considered in relation to several subsets of the digital asset market, one of which being Central Bank Digital Currencies (CBDCs).
The World Economic Forum (WEF) has reached a few general findings on CBDCs.
Confidentiality / Privacy
If privacy isn’t already front of mind for consumers, it should be. This essential right has become something of a luxury in an increasingly linked society. This is a tendency that must be reversed if future CBDCs are to prosper.
The World Economic Forum recognizes this, stating that “privacy in CBDC would need a dynamic and sophisticated approach to technology design and choices… Policymakers will need to create platforms where governments and other stakeholders may correctly convey their objectives while also investigating the possibilities of cryptography, security, identity, and other technological solutions. Without such a place, policymakers risk adopting a strategy without a comprehensive understanding of the non-regulatory instruments at their disposal to accomplish desired privacy and compliance objectives.”
With the great majority of nations contemplating their own CBDCs, as well as subsets of the asset class (wholesale vs. retail), interoperability is a legitimate worry if these currencies are to thrive.
“It is vital to underscore the necessity of having a uniform concept of interoperability for digital currencies,” the World Economic Forum says. This will need early conceptual discussion and planned coordination between business operators, policymakers, technologists, and regulators… Adopting universal standards will pave the way for the development of interoperable digital currencies and the technical elements of their exchange.”
Obstacles in Technology
The WEF used a basic pro and con approach when addressing technology aspects of how CBDCs will/should work.
While using distributed ledger technologies (DLT) to develop a CBDC has significant advantages, no technology is flawless. The risk of disruption from quantum computing, double spending, credential loss, and other issues are all highlighted as obstacles that must be overcome in this scenario. Naturally, the traditional advantages of DLT (improved efficiency, lower costs, faster processing, etc.) are still relevant.
Check out the whole White Paper Series HERE to learn more about how the WEF came to these findings.
Peru Has Entered the Race
Peru, like a number of other nations, has declared its intention to establish and deploy its own CBDC. President Julio Velarde of Peru’s Central Reserve Bank (BCRP) made the remark during a recent conference, and it revealed a few details about the country’s economic strategy.
“We won’t be the first,” Velarde said, “because we don’t have the wherewithal to be first and face those dangers.” With this in mind, Peru has opted to build on the results and development processes of bigger countries that are farther ahead, such as Singapore, Hong Kong, and India.
Brazil is getting ready for the pilot.
While Peru may be taking CBDCs more seriously today, Brazil has been working on the issue for some time. President Roberto Campos Neto of the Central Bank of Brazil (BCB) recently released a statement that provided some fresh light on the bank’s success.
The Brazilian CBDC, which is set to debut in 2024, is on the verge of launching its first trial program. This event is scheduled to take place in the next months, as the popularity of digital assets continues to grow in the South American country.
In addition to the CBDC’s development, Campos Neto said that thoughts are being given to regulating such an asset and the adoption of legislation to do so.
The “xrp world economic forum 2021” is a white paper released by the World Economic Forum. The paper highlights CBDCs in an effort to understand how these types of currencies will affect not just individuals but also the global economy.
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