Central Bank Digital Currencies (CBDC) are certified as a legally recognized form of payment as banknotes and coins. This could counter a new form of money edging other types of electronic payments. Digital currencies are likely to become legal tender in their jurisdictions, as stated by the officials. European Central Bank Executive Board member Fabio Panetta commented, “That consequence is ‘probably’ in the euro area.”
Designating the same episode, Elvira Nabiullina – Russian central bank Governor accepted and highlighted the importance of “consummate conversion between forms of money”. Securing CBDCs as a legally recognized form of payment besides banknotes and coins is the birth of a new form of money leading to other types of electronic payments.
Digital Currencies to Enfold Newer Options
Digital currencies could help reduce fear, it’s being eschewed provided the consumers continue with the existing payment methods such as credit cards and apps or grab newer options such as stable coins.
Panetta comments, “To not own legal-tender status for an additional instrument issued by a central bank will be quite awkward”. He added, “The ECB will investigate the matter over the coming two years”.
“China soon to be the first extensive economy launching a CBDC”. For this China plans for the digital yuan to be designed as legal tender from the outset. Yi Gang of China comments, “Until there’s a need for cash, our central bank will neither stop nor replace supplying it.”
Singapore Cognizes Virtual Currency for Retail
Singapore’s central bank is soon to inaugurate a new project — Code-named “Project Orchid”. The project is based on the technological strands of designing a digital form of its currency. The motive of the project is to compose itself for the days when the city-state decides to have one.
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