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  • Another country taking the leap toward CBDC: Kazakhstan

    Another country taking the leap toward CBDC: Kazakhstan

    The National Bank of Kazakhstan, NBRK, has issued a report on a digital tenge pilot and has opened a public consultation on the central bank digital currency.

    The digital tenge is a new kind of money to be issued by the central bank which is designed to increase the efficiency of the payment ecosystem in the country by reducing dependance on cash settlement. The National Bank has stressed that the CBDC is not aimed at replacing cash or the currency of the country. In fact, it is designed to act merely as an aide in the payment ecosystem. The CBDC is to be used an as alternative to conventional payment methods.

    According to NBRK the digital tenge will improve the competitiveness in the market and act to strengthen the financial system in the country. The bank has also paid attention towards privacy and security concerns with the digital tenge.

    China is the first major economy to take a step towards a central bank digital currency. The largest country by population has launched a digital yuan – e-renminbi. The country has successfully run pilot tests and banks are actively promoting the digital yuan. The digital yuan marked a new phase in the digitization of the globe. As the country also likes to maintain strict control over the digital sphere, the digital yuan will also act as a tool for that.

    The Bank of England, BoE, had also been debating the issuance of a central bank digital currency for quite some time now. However, the bank has been hesitant in launching one. Although the bank has not officially stated a decision yet, it has started recruiting for CBDC positions. More countries may soon follow suit with launching their central bank digital currencies.

  • Bank of England finally taking a nosedive into CBDC

    Bank of England finally taking a nosedive into CBDC

    The Bank of England has maintained its uncertain position of whether or not the bank will go ahead to launch a central bank digital currency, however, things may change soon for the country as the Bank or BoE has announced seven job openings all strictly related to CBDC.

    The official vacancies window of the bank went live with seven job postings this week. The job positions are project analyst, solution architect, senior manager, technology analyst and a senior enterprise architect – all of which are connect to central bank digital currencies. Moreover, one of the job positing had the title of “Stakeholder Analyst – CBDC”. A senior CBDC policy analyst is also needed by the bank.

    The page for the vacancies listing mentioned that the BoE is yet to land a decision on this matter. But the bank also went on about the importance of developing a central bank digital currency in today’s world. With the cryptocurrency market skyrocketing, the real uses of the blockchain technology had becoming more widely accepted.

    China has taken the initiative into creating its central bank digital currency – the digital yuan or e-renminbi. The digital currency of the country is aimed at maintaining the control of the government over the digital sphere.

    With China taking the lead, other central banks have also realized the importance of a CBDC in the current times. The jobs positing for CBDC related work of the Bank of England may hint towards a favorable decision of the bank concerning the matter.

    If governments throughout the world launch their own central bank digital currencies, this may jeopardize the position of cryptocurrencies as regulators and governments may adopt a tighter stance on cryptocurrencies in order to encourage the use of CBDC.