How Bank of Canada will launch its CBDC project

[Flow-er]

The CBDC projects have been taken by many countries. The Central banks digital currency is a digital form of the fiat currency and it's been adopted by many countries including African countries. The digital form of the fiat currency becomes very necessary when the world is gradually shifting away from the paper form of Financial transactions to the digital channel. The Bank of Canada has also decided to launch its CBDC project in partnership with the Massachusttes institute of technology (MIT). Both institutions would look into the methodology that would best sooth the CBDC project. Massachusettes institute of technology was linked with many CBDCs projects and that's why it was made the choice by the Bank of Canada.

The CBDCs are digital form of fiat currencies that is controlled by the government of the country. In other words, it's a centralized mean digital currency unlike cryptocurrency. I need clarification on a particular mystery on the China CBDC project. It was made known that the e-CNY would use the blockchain technology with smart contract enabled features. They will make the digital yuan a cryptocurrency because it will be decentralized by the virtue of the blockchain and smart contract Integration.

Can anyone clarify this?

 

[Lens1000]

The CBDC projects is one of the best projects in the digital world. There is a paradigm shift from the analogue world to the digital version. The world is becoming digitalised and it will be a very wise decisions for the government of the countries to jump on the track . The major reasons for this projects is that the government noticed that cryptocurrency is gradually taken over the Financial system of the ecosystem. The most painful thing is that cryptocurrency is a decentralized platform and they can't control it. This is why they chose the CBDC as an alternative to cryptocurrency. A lot have been done to make the CBDC looks very much like cryptocurrency. This is seen with the digital yuan. They used a blockchain technology for the platform used for its transactions. It's true that they also added smart contract ok the blockchain to make it look very well like cryptocurrency in functionalities. The best that one could do right is to take advantage of the project. My country have also launched theirs and it's called the digital naira. I don't really understand how it works because I want to take Advantage of the fortune in the project.

 

[Mika]

The Central Bank creates a digital currency by depositing fit currency in the bank. How many CBDC will be released depends on the fiat amount deposited in the bank. The value of CBDC will be pegged with the fiat money of the country. For example, if the US government launches CBDC, it will deposit 1 billion USD in the bank and release 1 billion CBDC (I used the figure 1 billion just as an example). The number of CBDC in circulation will always be equivalent to the amount deposited for the purpose of providing security to CBDC. Since CBDC is released by government, it will not be a crypto currency that can be mined or owned by the community. CBDC is just like fiat money, the only difference that it will exist only virtually and will need internet to send and receive. In my opinion CBDC are launced to ease digital transaction witfiat money. Just like you use digital banking through bank apps or other wallets, even payment processors like paypal where fiat money is passed between accounts, CBDC will perform in the same manner. Chinese digital currency called Digital Yuan is CBDC. They are enabling smart contrct functionaality only to guarantee the transaction.

 

[Lens1000]

The Central Bank creates a digital currency by depositing fit currency in the bank. How many CBDC will be released depends on the fiat amount deposited in the bank. The value of CBDC will be pegged with the fiat money of the country. For example, if the US government launches CBDC, it will deposit 1 billion USD in the bank and release 1 billion CBDC (I used the figure 1 billion just as an example). The number of CBDC in circulation will always be equivalent to the amount deposited for the purpose of providing security to CBDC. Since CBDC is released by government, it will not be a crypto currency that can be mined or owned by the community. CBDC is just like fiat money, the only difference that it will exist only virtually and will need internet to send and receive. In my opinion CBDC are launced to ease digital transaction witfiat money. Just like you use digital banking through bank apps or other wallets, even payment processors like paypal where fiat money is passed between accounts, CBDC will perform in the same manner. Chinese digital currency called Digital Yuan is CBDC. They are enabling smart contrct functionaality only to guarantee the transaction.

The CBDC is the digital form of the fiat currencies and it price hovered around the value of the fiat currency. It is very important to note that the digital currency is a global project because virtually all the countries in the world are starting to adopt the project. The use of the paper works in getting archaic in the financial system and there as been moves to digitalisation. Many countries have been gradually fading out the traditional financial system where you will keep storing throngs of files that will make everywhere look very messy. So, the adoption of the CBDC is one of the move to digitalisation and that's exactly what we have been seeing around. Most of the countries have started dishing out the services of the centralized digital currency. However, I Will also want to know the sticking difference between the CBDC and cryptocurrency. China digital yuan employed all the decentralized features on its CBDC project. The used the blockchain technology and also readd that they are planning on add smart contract to the e-CNY platform. I don't know how authentic the information is and I don't seem to see the correlation between centralization and decentralization. Can you answer this?