In fact, it is a digital analogue of the fiat currency of the state - for example, the digital Russian ruble. This idea is not to say that it is new - it originated in the 90s of the last century, and since 2018 it has been actively discussed and analyzed.
What was the catalyst for the development of CBDC? The first and main reason is the increasing pressure on the global financial market of cryptocurrencies, which, albeit rather slowly, but still surely displace the usual means of settlement. And here, as always, the issue of their insufficient regulation, the lack of a well-thought-out legislative framework and generally effective control mechanisms is acute. While the digital currency is issued by the central bank of the state, it has a much more stable and predictable exchange rate due to its binding to the fiat analogue, and is also managed and coordinated by the state.
That is, from the point of view of the government, this is a kind of golden mean. A tribute to the economic realities of today, but without the loss of state control over one of the most important areas - the monopoly on the issue of money. Cryptocurrencies are an obvious challenge to this monopoly, which is already gaining the scale of a real threat. It is growing more and more, involving more and more new participants, constantly increasing its turnover, but at the same time it remains a classic "gray zone" that undermines the stability of the economies not only of individual states, but of the whole world as a whole.
And here a rather difficult dilemma arises. On the one hand, it is quite logical that any state is interested in abolishing the crypto market and regaining total control over financial flows. And on the other hand, the cryptocurrency has already become so deeply intertwined with economic processes that pulling it out by the roots can cause significant damage and have the same unpredictable consequences. This means that it needs an alternative that can interest market participants and capture their attention. CBDC should become this alternative.
But how, with the help of what technologies does this system work? There is no single answer to these questions - each state develops its own individual approach. However , it is still possible to distinguish 3 key models:
- Model FI. Only banks and financial organizations have access to the new currency.
- Model EW. Large industrial enterprises are added to banks and financial organizations. Smaller players can access the currency through a specialized exchange.
- Model FI+. To access the new currency, a specialized non-banking organization is created-the operator of the system.
So, CBCD is a kind of attempt to pull users of cryptocurrencies to the side of state-controlled financial flows. And this approach has obvious advantages. This is the low cost of transactions combined with their high speed. And increased transparency, reducing the risk of fraud. But as usual, there are drawbacks. It will require an increase in the costs of servicing the financial system, a global revision of legislation, and leveling the obvious threat to the banking sector.
However, undoubtedly the big game has begun - the Bahamas and Jamaica are already on the field, Uruguay, Saudi Arabia, the UAE, Canada, China, France, South Africa, Singapore and a number of other countries are preparing to join them. The concept of the digital ruble is also considered in Russia. Well, time will tell what all this will lead to.