Is the future of money spelt CBDC?
12/02/2020
CBDC. Get used to that acronym because you’re going to see a lot more of it. CBDC stands for “central bank digital currency”. How would it work?
To take a simplified example, let’s say the Monetary Authority of Singapore (MAS) issues a CBDC. It allows individuals to hold deposit accounts at the MAS, and everybody does. Then if I need to make a payment to you, I activate the MAS payment app on my phone, fill in the payment details, designating you as the payee. The MAS debits my account after verifying I am the rightful owner and have a sufficient balance. It then credits your account after checking your credentials. Commercial banks or other intermediaries are not involved.
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Home » Analysis & Comment » Is the future of money spelt CBDC?
Is the future of money spelt CBDC?
CBDC. Get used to that acronym because you’re going to see a lot more of it. CBDC stands for “central bank digital currency”. How would it work?
To take a simplified example, let’s say the Monetary Authority of Singapore (MAS) issues a CBDC. It allows individuals to hold deposit accounts at the MAS, and everybody does. Then if I need to make a payment to you, I activate the MAS payment app on my phone, fill in the payment details, designating you as the payee. The MAS debits my account after verifying I am the rightful owner and have a sufficient balance. It then credits your account after checking your credentials. Commercial banks or other intermediaries are not involved.
Please subscribe or log in to continue reading the full article.
Get unlimited access to all stories at $0.99/month
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Source: Read Full Article