Central Bank Digital Currency discussions seem to be heating up. Be interesting to see where each of these four work streams at ECB lead to:
“First, we will test the compatibility between a digital euro and existing central bank settlement services (such as TIPS),” outlines Panetta.
Second, we will explore the interconnection between decentralised technologies, such as distributed ledgers, and centralised systems.
Third, we will investigate the use of payment-dedicated blockchains with electronic identity.
And fourth, we will assess the functionalities of hardware devices that could enable offline transactions, guaranteeing privacy.”
Those are four pretty solid areas that Central Banks need to be across and understand. They need to do so before the likes of Facebook arrive and decide some of these things via the popular vote, or even facts on the ground like we have in parts of the economy in Asia.