CBDC News in April 2020
We are back with a fresh batch of crypto market news! Most avid readers have by now gotten used to crisis related headlines. However, there are also more optimistic notes – Central Bank Digital Currencies have been trending in the recent months. Keep reading to hear all about the latest CBDC updates!
The Dutch Are Taking the Lead
April 21 brought news about the interest of the Netherlands in becoming the EU’s CBDC proving ground. The Dutch Central Bank (DNB) published a 45 page report on why they are the right choice for eurosystem’s digital currency development. The DNB praised smart contracts and stated that if they’re executed properly, they could help future proof the industry. DNB has lots of ambition – they aim at becoming the European research, development and deployment hub for CBDCs.
China’s Quest Continues
If you have kept an eye on CBDC updates from 2020, you have certainly heard about China’s agenda. The country has taken an active lead in developing their own digital currency – the digital Yuan. Screenshots of the exchange application’s interface became public in the beginning of April and this week brought news about inflation predictions.
An official statement from the Bank of China confirmed that pilot tests have been carried out in Shenzhen, Suzhou, Xiongan and Chengdu. The representative claimed that the closed tests will not have any impact outside the test environment and will not pose threats to the RMB issuance system or the economy as a whole. China plans to secure the system by having commercial institutions pay a 100% reserve to the central bank to ensure that the digital currency is not oversold.
These were the CBDC headlines this week. We can expect lots more in the coming months. It is certainly an interesting time to be in crypto markets!