Blockchain Technology and Cryptocurrencies
Completion requirements
Cryptocurrencies and blockchain technology are some of the means of how technology is entering the financial world. As technology advances, so does the financial products and the provision of these products and services. After watching this video and going through the attached slides, you will learn more about how technology is shaping the world of finance. Is the emergence of multiple non-central bank-backed cryptocurrencies threatening traditional central bank-backed currencies?
Shaping the Financial World
Central Bank Digital Currencies
Central Bank Initiatives
Real Time Gross Settlement
- Brazil, Canada (Project Jasper), Europe and Japan (Project Stella), Singapore (Project Ubin), South Africa (Project Khokha)
Digital Currency
- Central Bank Claim: Bahamas (Sand Dollar), Ecuador (Dinero Electrónico), Iran (Payman), Sweden (E-Krona)
- Commercial BankClaim:Philippines (ePiso), Senegal (eCFA), Tunisia (e-Dinar)
- Possible Hybrid: China (Digital Currency Electronic Payment)
- Commodity Backed: U.K. (Royal Mint Gold), Venezuela (Petro)
- Other: Dubai –emCash, Saudi & UAE (cross-border pilot), Uruguay (Digital Peso)
CBDC Potential Architectures
CBDC – Opportunities
- Continue Government Provision of a Means of Payment
- Promote Competition in Banking System
- Promote Financial Inclusion & P2PPayment
- Address Payment System 'Pain Points'
- For Some Nations, Possibly Avert Sanctions
CBDC - Challenges & Uncertainties
- Financial Stability and Potential to Increase Ease of Bank Runs
- Changes to Commercial Banks' Deposits and Funding Models
- Effects on Credit Allocation and Economy
- Monetary Policy Implementation & Transmission
- Resilience of Open Payment Infrastructures