SWIFT OUTLINES POTENTIAL CBDC NETWORK
The international payment network SWIFT announced this week they have plans in place to creat a global network of central bank digital currencies, according to a report from Reuters.
Financial messaging system SWIFT has laid out its blueprint for a global central bank digital currency (CBDC) network following an 8-month experiment on different technologies and currencies. The trial, which for the last month has involved both France and Germany’s national central banks as well as global lenders like HSBC, Standard Chartered and UBS, looked at how CBDCs could be used internationally and even converted into fiat money if needed.
Around 90% of the world’s central banks are now using, trialling or looking into CBDCs. Most don’t want to be left behind by bitcoin and other cryptocurrencies, but are grappling with technological complexities.
Somewhat unusually for a mainstream article, Reuters actually mentions “programmability”, although they do somewhat downplay its significance:
CBDCs are being seen as a step forward as they could effectively be programmed to meet both governments’ and individuals’ specific needs, although they have also raised concerns about privacy and surveillance.
For those who don’t know, “programmability” means banks issuing currency, or companies paying it as wages, could effectively put limits and controls over how and where it is spent, as well as what it is spent on.
So yes, many of us are indeed “concerned” by that idea.
You can read our past work detailing potential abuses and dangers of CBDCs here, here and here.
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