The status of CBDCs: Does the attraction decrease or do they adapt?

The status of CBDCs: Does the attraction decrease or do they adapt?

The stimulus of CBDCs: faded or adaptable?

While some central banks, such as Kenya, have expressed that the once promising charm of CBDCs has decreased, other financial institutions, such as the IMF, remain receptive to him. Over 100 countries, including Great Britain and the USA, are currently examining the possible implementation of CBDCs. However, only a few have got beyond small pilot projects.

The bank for international payment compensation (BIZ) acknowledges that CBDC systems must remain highly resilient in various scenarios, including temporary system failures, situations in which reliable Internet or electricity are not available, or civil emergency conditions such as natural disasters or war. In order to achieve successful and safe implementation, modernized technology is not only necessary to support a CBDC, but also for its protection. This opinion is shared by other central banks.

The Polaris project urgently urges central banks to set a chief security officer (CSO). This role would enable regular communication between central banks worldwide, since CBDCs would require an international framework. In addition, central banks should consider other operators within the CBDC ecosystem, including commercial banks and trading partners. Regular checks and assurances of safe technology are of crucial importance if central banks choose to use CBDCs.

The biz suggests that its framework can also serve as an instrument for central banks to evaluate your cyber security and to be ready for resilience. By evaluating and classification of compliance with the practices set out in the framework, central banks can understand their current status and requirements for the operation of a CBDC system.

It remains to be seen how the charm of CBDCs will develop in the future. While some central banks are skeptical, others continue to show interest and actively examine the implementation of such digital currencies. The safety and resilience of CBDC systems will play a crucial role in gaining the trust of the users and enabling smooth operation.

Source: Coinunited.io