One thing that has surfaced over the last couple of years is several regulators across different countries trying to protect against the crypto sector’s menace. Even though most of them agree that the sector rewards people abundantly, there are not ruling out the regulation of the sector. One major factor for this has usually been the anonymous way transactions are done and the need to verify people’s identity against fraud.
To create a line that people would not cross, the regulators have taken it upon themselves to talk about creating their respective Central Bank Digital Currencies. With China already taking the lead in this aspect, a group of Asian countries has decided to join hands to create a joint CBDC.
Four countries are involved in the creation of the joint CBDC
In the joint statement that was released some days ago, the regulators of the countries in question have announced the need for a joint CBDC. Citing their reasons, the regulators mentioned that they wanted to create a unique currency accepted by the respective countries, serving as a cross-border form of payment. The project has already been embarked upon between four major Asian countries and has been named the multiple Central Bank Digital Currency.
The main reason why the project was embarked upon was to create a form of payment that would topple that of the traditional payments system. The regulators want to eliminate major issues in the sector, such as the high cost of transactions and several inefficiencies on their part. With the ongoing project, the regulators have been clamoring for several banks’ need to join hands with them to make the creation a success. The project is said to be the joint effort of the respective regulators across China, Thailand, the United Arab Emirates, and Hong Kong.
Countries around the world are still looking for ways to create their CBDCs
The project was said to have been started on a framework known as Inthanon-LionRock, which was brought to life in 2019 to tackle the shortfalls of cross-border payments across the countries. Also, they have said that the new project will be built on a proof of concept blockchain while making use of DLT. The new project will consider several use cases if the CBDCs are to be developers while considering several international and local brands. With Bitcoin touching the $50,000 price mark some days ago, the entire financial market has seen major cash outflow into the sectors.
With things like these happening, regulators in the sector have been stretched thin in regulating the sector. Despite things like these, the sector has provided massive returns to users worldwide, judging by the massive surge in the assets’ price over the last few months. Although several parties have agreed that CBDCs would not be able to rival cash, most governments are trying to use it as a means to put a leash on the outgrowing crypto population in their respective countries.