Last updated on November 17th, 2022 at 01:13 pm
Different countries are actively working on creating their CBDC through their central banks. Most governments are still at the experimental and theoretical phase of CBDC. For instance, the Nigerian Central Bank is working with a Barbados blockchain technology firm, Bitt, to develop its CBDC. Most countries like Nigeria are opting for CBDC because of its potentials of improving financial inclusion, reducing transaction costs, increasing the speed of transactions, and much more.
At the moment, no country has a functional CBDC that works across borders effectively, but this may change with the arrangement between the following countries: Singapore, Malaysia, South Africa, and Australia.
Recently, the Central banks of Singapore, Malaysia, South Africa, and Australia decided to come together to run a cross-border experiment to see if their CBDCs could function effectively. They wanted to see if the transitions are seamless and affordable.
This scheme was designed to see if the bottlenecks that come with transactions like cost, middlemen and much more could be reduced. With this scheme, a lot of things will be tested and the results will be made public in 2022.
According to a statement by the Assistant Governor of Bank Negara Malaysia, Fraziali Ismail
“The multi-CBDC shared platform has the potential to leapfrog the legacy payment arrangements and serve as a foundation for a more efficient international settlement platform.”
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