Framework for CBDC's

[xrphilosophy]

https://cointelegraph.com/news/world-economic-forum-debuts-framework-for-central-bank-digital-currency

"The framework recognizes that a CBDC — among other things — can improve the cost and speed efficiencies of cross-border interbank payments, as well as reduce settlement and counterparty risks. The WEF notes that a digital currency can also enhance financial data transmission and reporting, and improve traceability compared to physical cash.

The paper admits that, before considering a CBDC, other solutions to economic friction should be considered. A digital currency may not add value in domestic interbank payments where an efficient system is already present."

[xrphilosophy]

Even if CBDC's come out tomorrow- there is still plenty of friction left for something like an ODL to be useful- imo.

 

[Caracappa]

10 minutes ago, xrphilosophy said:

Even if CBDC's come out tomorrow- there is still plenty of friction left for something like an ODL to be useful- imo.

 

Isn't a CBDC just a digitization of the money that, actually allready is digital in Central banks? My bank contains nothing more then numbers… Those numbers decrease when I pay with my card or I pull FIAT out of a wall.

Countries and continents still want to exchange those currencies without having to hold the other countries currency/CBDC. So imo they are preparing the financial landscape for better interconnection to the XRPL and be able to temporarily use the ODL pool for exchanging CBDC's with eachother.   

Yet, I know jacksh*t about their intentions.

Edited January 23, 2020 by Caracappa

[xrphilosophy]

As far as I can tell yes.  The idea of a transfer mechanism for cbdc's being an underlying bond of some sort seems crazy to me.  To your point though the article on cointelegraph details three types of CBDC's one of which can be potentially be held by retail investors. I suppose that's slightly new.

[Tripple]

It seems to be the case that CBDCs will be further down the line, but the expectation is that other (probably privately offered) solutions are required more immediately to address friction points in cross-border payments. 

[Lumpy]

1 hour ago, xrphilosophy said:

domestic interbank payments

are damn efficient today. Point.

[Julian_Williams]

page 17

[Julian_Williams]

page 17

http://www3.weforum.org/docs/WEF_CBDC_Policymaker_Toolkit.pdf

Edited January 23, 2020 by Julian_Williams

[Julian_Williams]

3 hours ago, Tripple said:

It seems to be the case that CBDCs will be further down the line, but the expectation is that other (probably privately offered) solutions are required more immediately to address friction points in cross-border payments. 

CBDC do not address cross border payments

Sending a digital dollar to the UK arrives as a dollar, and then you have to find someone in the UK who wants to give you pounds for your dollars.

XRP changes the Dollar to a pound en route.  It is sent as a digital dollar and arrives as a digital pound.

CBDC enhance XRP use case.

JBC is a stable coin changeable into pounds or dollars. 

[Julian_Williams]

4 hours ago, xrphilosophy said:

https://cointelegraph.com/news/world-economic-forum-debuts-framework-for-central-bank-digital-currency

"The framework recognizes that a CBDC — among other things — can improve the cost and speed efficiencies of cross-border interbank payments, as well as reduce settlement and counterparty risks. The WEF notes that a digital currency can also enhance financial data transmission and reporting, and improve traceability compared to physical cash.

The paper admits that, before considering a CBDC, other solutions to economic friction should be considered. A digital currency may not add value in domestic interbank payments where an efficient system is already present."

I disagree.  The statement is a bit like saying in the 1980s a domestic digital phone line does not add value to a domestic analogue phone line.  If you go on using analogue phones that might almost be true.  Digital made new services possible.

Digital money can be streamed.  It can have attachments, smart contracts, take instructions, carry history and be distributed directly to a number of wallets.  The IoV will work with digital money and it will transform domestic and cross border services

Edited January 23, 2020 by Julian_Williams

[Julian_Williams]

I just wonder why people are so pessimistic.   XRP is the only elegant solution to cross border trading between CBDCs and to underdeveloped countries.

Edited January 23, 2020 by Julian_Williams

[xrphilosophy]

29 minutes ago, Julian_Williams said:

I disagree.  The statement is a bit like saying in the 1980s a domestic digital phone line does not add value to a domestic analogue phone line.  If you go on using analogue phones that might almost be true.  Digital made new services possible.

Digital money can be streamed.  It can have attachments, smart contracts, take instructions, carry history and be distributed directly to a number of wallets.  The IoV will work with digital money and it will transform domestic and cross border services

Fair enough.  Those are cointelegraphs words not my own.  And I am sure they are parroting the resistance on the part of some Western interests to go slowly on this- but- it's worth noting, and why I included it.  That sentiment is included in the document toolkit attached however.  They are asking countries to examine - 'what if any benefit does a CBDC have for our country?'  In some cases I imagine less than more depending on the country, but I cannot speak to or reason that out individually.

[xrphilosophy]

23 minutes ago, Julian_Williams said:

I just wonder why people are so pessimistic.   XRP is the only elegant solution to cross border trading between CBDCs and to underdeveloped countries.

The market is low.  I think that's about it.  Fear sets in as we have seen on xrpchat and elsewhere.  First look at an escalating market, and everyone will feel brilliant again.  Unfortunately it's that simple- just the reptilian brain at work.

[Tripple]

17 hours ago, Julian_Williams said:

CBDC do not address cross border payments.

Nor did I suggest that they would. I simply stated that they'll come after private solutions that ease frictions in cross-border value transfer. 

[PlanK]

I don't get how CBDCs are anything different than the $US dollars that central banks currently hold to control the value of their native currencies.  Sure, I can see that it can add stability but that money still needs to be converted back to something usable in the native country.