Digital Currency of Central Banks

04/28/2022 AT 00:00 add to calendar

Digital Currency of Central Banks

Central bank digital currencies (CBDC's) combine the functionality of electronic payments with the universal accessibility of money. Under analysis by several hundred Central Banks around the world, these digital currencies seek to ensure the simplification of payments and the promotion of financial inclusion, according to the Bank for International Settlements (BIS).

The initiatives advance both in developed economies where money can disappear with the advance of digitalization, as is the case in Sweden, and in developing economies, where physical money is the only means of payment available for the exchange contingent. China is emerging on the international stage with tests that already add up to tens of millions of digital yuan. Brazil is also part of the movement, and may have its own digital currency in the coming years. But after all, what are digital currencies and why are Central Banks interested in issuing them?

One of the main reasons that justify the issuance of digital currency by Central Banks is to accompany the process of digital transformation of payments. CBDC's can be a safe, functional and efficient alternative to make payments, domestic and international. The Conference will help to clarify this wonder that will become a reality in the near future

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