EEF: digital currencies of the Central Bank will not be able to interact without agreement of protocols

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The World Economic Forum (WEF) has compared three state digital currencies and made conclusions on their compatibility.

In the WEF report
is compared the state digital currency of China with the digital currencies of the Central Bank of the Swedish Riksbank and the Bank of Thailand. The authors of the document note that the state digital currency of Thailand is aimed only at B2B payments, in contrast to the digital currency of the Central Banks of China and Sweden, which also cover retail use.

The WEF draws attention to the fact that the state digital currency of the PRC is placed in a special wallet that integrates with other payment systems. The wallet can be used in conjunction with the mCBDC channel project for international transactions and B2B use cases. The digital currency of the Central Bank of Sweden is integrated into the Real Time Gross Settlement System (RTGS), which gives it the ability to interact with other payment systems. The forum reported that the Bank of Thailand’s government digital currency works with Ethereum-based networks to provide even more options. The WEF believes that for the interaction of digital currencies, the Central Bank needs special punctures and standards.

“If the Central Bank decides to provide international access to the state digital currency and wants to maintain interaction with the foreign digital currencies of the Central Bank, it needs to agree on protocols and communication standards that will allow operators of domestic and foreign state digital currencies to freely exchange information.”

According to the authors of the report, other aspects of the interaction of digital currencies of the Central Bank should also be taken into account. It’s about KYC, AML, the role of intermediaries, and user privacy.

The governments of the countries issuing Central Bank cryptocurrencies are aware of the importance of the international integration of this type of asset. Therefore, part of the testing of state digital currencies is aimed at interacting with the state currencies of other states. At the beginning of the month, it was reported that Hong Kong’s regulators, together with the People’s Bank of China and the central banks of Thailand and the United Arab Emirates, became participants in the Multiple CBDC Bridge initiative to test government digital currencies.

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