A Bank for International Settlements project has suggested using “access enablers” to make a retail central bank digital currency more accessible and private.
In the Sela ecosystem, the central bank that issues an rCBDC maintains the ledger for it with pseudo-anonymous end-user accounts and provides instantaneous settlement with a real-time gross settlement system. Funding institutions manage users’ accounts and convert the rCBDC into and out of bank deposits and cash.
“Lower entry barriers can enable wider participation in the provision of rCBDC services, compared with the existing payments market, to include, for example, SMEs [small- and medium-sized enterprises], civil society and charitable organisations, e-commerce providers, community centres and technology companies, among others.”
Financial institutions are understood in the traditional sense of banks, credit unions and similar organizations. Thus, it does not lead to disintermediation. Project Sela rCBDC users would not have to be account holders to use the services of those institutions to convert an rCBDC to or from cash. Payments are settled by the central banks, and users control their money the whole time. The central bank participants are assumed to be the operators of the distributed ledger system.
A system weak point noted in the report is RTGS systems, since they are usually not available around the clock and are not designed for frequent small transactions. Potential technical solutions are discussed.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Hong Kong-Israel CBDC Project Examines Security, Privacy, AccessibilityProject Sela claims to settle directly on central bank balance sheets without compromising people's data
Read more »
Hong Kong stocks decline for fourth day as Japanese stocks dropStocks in the Asia-Pacific region mostly climbed Monday, Sept. 11, with shares in Japan decreasing for the third session and the Hong Kong market down for...
Read more »
Hong Kong stocks decline for fifth session as Japanese stocks gainStocks in the Asia-Pacific region were mixed Tuesday, Sept. 12, with shares in Hong Kong declining for the fifth day. The Hang Seng Index of Hong Kong...
Read more »
Hong Kong Has the Most Ultra-Wealthy Residents in the World, a New Report SaysNew York City has the second-largest population of ultra-high-net-worth people.
Read more »
UK foreign minister to warn of Iran threat on visit to IsraelBritish foreign minister James Cleverly will travel to Israel and the Palestinian territories this week, where he will press for renewed dialogue on a two-state solution and commit to tackling threats to regional security, including from Iran.
Read more »