- The three major economies of China, France, and South Korea have recently been linked with expressing interest in launching their own Central Bank Digital Currencies.
- Interest in crypto by private citizens has risen slowly but surely after numerous signs of a global recession.
- The Coronavirus has highlighted the need to go entirely paperless and Central Banks will have to lead the charge or risk losing a competitive edge to Bitcoin.
In the past few weeks, the countries of France, South Korea, and China have made headlines in their willingness to experiment with Central Bank Digital Currencies. On the 30th of March, Banque de France requested interested parties to apply for a new project aimed at testing the use of a digital Euro to settle interbank transactions. The Bank of Korea made a similar announcement earlier this month that it too was exploring the issuance of a CBDC. Additionally, the People’s Bank of China has confirmed that they are still researching and developing a national digital currency.
Why CBDCs Will Become a Reality Very Soon
To begin with, we have mentioned three very prominent central banks. France is one of the big 4 countries in Europe. The other 3 include the UK, Germany, and Italy. For France to call on applications for the exploration of a digital Euro, its officials have done all the much-needed research and projections. They have probably concluded that they need to be first-in-market with such a digital currency or risk playing a game of catch-up to the country that launches the first CBDC in Europe. In a sense, Central Banks are probably competing to be the first to embrace the technology. Competition is usually good and results in superior products and services.
Secondly, as COVID19 continues to have a negative effect on the global economy, private citizens around the globe have started the process of hedging their fiat holdings with gold and Bitcoin. The popular author of ‘Rich Dad, Poor…