Why central bank digital currencies matter
Clear potential seen in the cross-border remittance space.
As the world increasingly shifts towards digital payments and currencies, central banks across the globe are exploring how such emerging technologies can be used to address pain points in the financial system, while at the same time providing the implicit trust and protection of a central bank.
One way that central banks are looking to digitise their financial infrastructure is through the introduction of central bank digital currencies (CBDCs) — a central bank-issued digital currency that represents a liability of the central bank.
CBDCs can be either retail (the digital equivalent of cash for use by households and businesses), or wholesale (accessed only by financial institutions, similar to existing central…
