Feb 08, 2021
Central Bank Digital Currencies (CBDCs) could represent the most exciting innovation seen in central banking in many decades and represent an attempt of replacing cash with a more efficient, modern type of money.
CBDC initiatives are rapidly multiplying, and the large majority of Central Banks around the world, from the People’s Bank of China to the European Central Bank, have planned proofs of concept or launched experimentations to test the feasibility of a CBDC.
Governments too have been in the process of seeking to understand and adopt digital currencies and to learn more about their potential to foster economic growth and prosperity for their people, preserve monetary value, and maintain governance over their currency.
The challenges that CBDCs pose however to central Banks and regulators, along with the considerations they require, are numerous - including choosing the right design, infrastructure, level of decentralization vs. centralization, policy and more.
Several economic and technology experts from across the Algorand ecosystem have come together to create a CBDC paper, in an effort to educate public leaders facing the reality of a new digital economy.
Additionally, our team is working on a CBDC blog series - each post is focusing on a different component of CBDC issuance.
We have just published the first post of the series: