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Central banks in Australia, Singapore, Malaysia and South Africa launched a Central Bank Digital Currencies (CBDC) Scheme on August 2, 2021.
The latest CBDC project was launched by stated countries with the aim of developing prototype shared platforms for cross-border transactions by using multiple CBDCs.
These new platforms would enable the financial institutions to transact directly with each other across CBDCs. It will eliminate the requirement for intermediaries and reduce the time and cost of transactions. The initiative, will also explore different technical, governance and operating designs. It will also publish its results in early 2022. This platform will also leapfrog the legacy payment arrangements and serve as the foundation for more efficient international settlement platform.
CBDC is the virtual format of a fiat currency in a particular nation or region. It is an electronic record or digital token of official currency. This currency is issued and regulated by its monetary authority.
By: Brijesh Kumar ProfileResourcesReport error
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