CBDCs & their technical abilities for global transacactions

[MusaMohamed]

Many countries have research, development and launch pilots for their CBDCs. In 2023, we will have Japanese and Russian central banks. Russia goes ahead of all by not only launching pilot of their digital Yen for testing (like on testnet) but they go with real pilot on retail purchasers and their transactions.

Many countries announce their interests in CBDCs and plans to launch theirs.
https://cbdctracker.org/

Japan Will Launch Pilot for Issuing Digital Yen in April
Bank of Russia to Pilot CBDC in April. Digital ruble payments will be launched for retail purchases and peer-to-peer transactions

I don't know what are plans of governments and central banks for CBDCs and how different CBDCs will be able to connect with each other for transactions in future.

- Will we simple download applications of CBDCs and have our banks on our devices without need to go to central banks and register our accounts there?
I guess they will force their citizens to register accounts, KYC at bank office before are able to use CBDCs on applications.

- How those CBDCs from different nations will be able to connect with each other in dual interactions or global interactions?
In fiat currencies, we have systems like SWIFT, CIPS to connect different central banks.

With CBDCs, what blockchain will they run on?
If each CBDC runs on an unique blockchain, will it be very difficult to use them for global transactions cross countries.

To solve this, will central banks make bridges, CBDC bridges for cross countries, cross central bank transactions by CBDCs?

Cryptocurrency bridges are weak and vulnerable to hacks. Will CBDC bridges be better in security?

https://asia.nikkei.com/Spotlight/Caixin/Analysis-China-s-CIPS-cannot-rescue-Russian-banks-from-SWIFT-ban

China's central bank launched its own Cross-Border Interbank Payment System, known as CIPS, in 2015

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[Apocollapse]

- Will we simple download applications of CBDCs and have our banks on our devices without need to go to central banks and register our accounts there?
I guess they will force their citizens to register accounts, KYC at bank office before are able to use CBDCs on applications.
- How those CBDCs from different nations will be able to connect with each other in dual interactions or global interactions?
In fiat currencies, we have systems like SWIFT, CIPS to connect different central banks.
With CBDCs, what blockchain will they run on?
If each CBDC runs on an unique blockchain, will it be very difficult to use them for global transactions cross countries.

Either you can register your account without going to the bank or must go to the bank, you still need to go to the bank because you would convert your cash to fund your CBDC.

Don't need to think like CBDC is an altcoin where it have many network, address etc, CBDC in every countries will be same because they're copycatted, the first country which launch their CBDC will become a pioneer where the other countries will follow their system.

There's no new innovation from one country to other, the difference is just the pegged currency.

[Don Pedro Dinero]

Either you can register your account without going to the bank or must go to the bank, you still need to go to the bank because you would convert your cash to fund your CBDC.

Are you sure about that? CBDCs eliminate the need for intermediaries between the central bank and the user, i.e. they eliminate the need for banks. Although I would not be surprised if politicians decide to involve the banks as well.

To the OP, I particularly don't go to rush to spend CBDCs. I'll wait until they're implemented and people start using them, and then I'll see what I do. I'm going to offer as much passive resistance as I can. Although I guess after a while they will be used by most people, just like credit cards.

[franky1]

ok simplied

most countries are designing their CBDC as such

the main net layer is a blockchain between central bank and commercial payment services(banks). this is called the wholesale layer. where banks have reserves they swap between each other.
below that COMMERCIAL payment services(banks) have thier own customers who have accounts(like channels) with
which the commercial service gives 'inbound balance to
(customers request using that balance to go back to the commercial banks as long as the commercial bank then routes value to a destined other bank who has a destined other customer)

yep the silly guys messing with things like liquid and LN are sandbox testing CBDC idea's which they got from the hyperledger(bis) project in 2015
(banks got free coders who didnt know it)

anyway back to the features commercial bank customers see:
where by there are 3 types of accounts
level 0 are the non-kyc accounts that have a inbound limit of like a months wage at min wage
level 1 are the simple-kyc accounts that have a inbound limit of like a years wage at middle income wage/small business value
level 2 are the full-kyc accounts that have a inbound limit of lambo lifestyle and corporate account income level

if users wnat to send or receive more then their levels limit they will have to upgrade their account by registering with required documents

and yes even china and many countries have a level 0 no-kyc wallet (much like how people today can have a virtual visa card now without life history registration)
..
as for the international settlements.. well there is another network above each countries CBDC called the M-bridge which will become like the IMF reserves network

most of this information can be found on the BIS website

..
some of the CBDC domestically. (inside their country)
will have some commercial banks
where users can have small amount of tokenised digital vouchers of units of small value that users can peer-to-peer swap (without the routing process of bank reserves) so that in times of bad internet connectivity people can still make small payments directly with each other

[Charles-Tim]

I don't know what are plans of governments and central banks for CBDCs and how different CBDCs will be able to connect with each other for transactions in future.

CBDCs are fiat, if the government want to use it as a means of exchange between countries, it will be possible for them.

- Will we simple download applications of CBDCs and have our banks on our devices without need to go to central banks and register our accounts there?
I guess they will force their citizens to register accounts, KYC at bank office before are able to use CBDCs on applications.

With my experience with eNaira in Nigeria, you have to download eNaira walllet for your eNaira (Nigeria CBDC) to connect to the app through your bank.

With CBDCs, what blockchain will they run on?
If each CBDC runs on an unique blockchain, will it be very difficult to use them for global transactions cross countries.

Unlike bitcoin that has a transparent blockchain, eNaira did not have transparent blockchain, so I guess other CBDCs too, but it was said it was built using blockchain technology, I do not know how valid is that.

With CBDCs, what blockchain will they run on?
Cryptocurrency bridges are weak and vulnerable to hacks. Will CBDC bridges be better in security?

Remember CBDCs are completely centralized, the government are in control all the time.

Are you sure about that? CBDCs eliminate the need for intermediaries between the central bank and the user, i.e. they eliminate the need for banks. Although I would not be surprised if politicians decide to involve the banks as well.

I thought it would be like that, but it was not like that when eNaira was created in my country. You can fund your eNaira wallet through your bank, even if you do not fund it through your bank, you still need to provide information that is through your bank to register and you will be able to see customers care link of your bank through the app. Although, banks may not be needed for making transactions, but they are still needed for certain things like registration and funding of the wallet, but some people may not fund it using their bank account but depend only on the money sent to them through another eNaira wallet.

[Husires]

We do not yet know how they think, and therefore all that we will talk about is theoretical suggestions, but from a technical point of view, it is possible, these currencies will be centralized, and therefore central bridges can be built between central banks to exchange currencies, and there will be currencies for use within the country.
Or agreeing on a unified currency used for transfers between countries and then converting that unified currency into local currencies.
The problem is, will this system be universal? In the sense of unanimity among states on it. I think this is the hardest part.

[franky1]

We do not yet know how they think, and therefore all that we will talk about is theoretical suggestions, but from a technical point of view, it is possible, these currencies will be centralized, and therefore central bridges can be built between central banks to exchange currencies, and there will be currencies for use within the country.
Or agreeing on a unified currency used for transfers between countries and then converting that unified currency into local currencies.
The problem is, will this system be universal? In the sense of unanimity among states on it. I think this is the hardest part.

a international single currency is not useful. because there is no trade(exchange) value if its just moving the same currency. they make money on the swaps/reserves of differing currencies

the m-bridge will be a network of multiple currencies allowing the so called "atomic swaps" for fee's

[Charles-Tim]

Or agreeing on a unified currency used for transfers between countries and then converting that unified currency into local currencies.
The problem is, will this system be universal? In the sense of unanimity among states on it. I think this is the hardest part.

Fiat have a tradition which may not just change because the government will not be willing to do that, that is foreign reserve. All countries have foreign reserves which are the foreign currencies owned by a country. They use that to gauge inflation and if there is inflation, that is used to know it is time to reduce their local currency value which will lead to persistent rise in price of goods and services in that country. Which means a unified currency is not possible as to how the world is made up in economic aspect.

[kryptqnick]

The concept of CBDCs has been around for a while, but it seems that it's a technology that some experiment with, not something that will take over the world. As I see CBDCs more in competition with fiat cash than with cryptos like Bitcoin, I am not concerned much about their development. If they are made with an obligatory identification in mind and are meant to eventually replace cash, then it's a privacy concern, but only if fiat cash gets outlawed or using CBDCs at least for some purposes becomes obligatory. So far, we are not close to these things becoming reality, so experiments can continue without much harm because people can choose not to use them.

[hyudien]

I don't know what are plans of governments and central banks for CBDCs and how different CBDCs will be able to connect with each other for transactions in future.

- Will we simple download applications of CBDCs and have our banks on our devices without need to go to central banks and register our accounts there?
I guess they will force their citizens to register accounts, KYC at bank office before are able to use CBDCs on applications.

- How those CBDCs from different nations will be able to connect with each other in dual interactions or global interactions?
In fiat currencies, we have systems like SWIFT, CIPS to connect different central banks.

With CBDCs, what blockchain will they run on?
If each CBDC runs on an unique blockchain, will it be very difficult to use them for global transactions cross countries.

To solve this, will central banks make bridges, CBDC bridges for cross countries, cross central bank transactions by CBDCs?

Cryptocurrency bridges are weak and vulnerable to hacks. Will CBDC bridges be better in security?

The simple answer is to stay in control of your finances digitally.

Apart from that, everything is under control on the track and the rules for how fiat finance works, and your personal data must be recorded properly as a whole KYC for the sake of citizen transparency. You can't just run away with the money, because everything is registered. Full control is what government expects, your money, assets, and all ownership can be easily deactivated.

Relations between countries are built to stabilize each other as well as to compare financial growth statistics. So between data from one country to another country, there will be a connection. If You go from country A to country B then the sophistication of the technology will now display all statuses of a person. That's already a set when you do KYC.

[noorman0]

So far I haven't found a single technical requirement how CBDC should be printed with the default properties. It is rumored that CBDC will be completely different from cryptocurrency especially the network infrastructure, but Norway has considered the Ethereum technology as the basis of its network. Then this is far from forecasting KYC requests.
I think every country will have their own version of CBDC technically. And about being globally acceptable, it will also depend on their scalability plans.

[Argoo]

So far I haven't found a single technical requirement how CBDC should be printed with the default properties. It is rumored that CBDC will be completely different from cryptocurrency especially the network infrastructure, but Norway has considered the Ethereum technology as the basis of its network. Then this is far from forecasting KYC requests.
I think every country will have their own version of CBDC technically. And about being globally acceptable, it will also depend on their scalability plans.

Now over 110 countries are working on the possibility of issuing their own digitized national currencies or CBDC.
CBDC is a full-fledged equivalent of cash, it does not depend on the ability of banks to serve it. It is issued in the form of a unique code, which is stored on a special electronic wallet. During transactions, funds simply move from one wallet to another, there are no intermediaries (banks or financial organizations) or their participation is minimal. However, in any case, banks will have full control over their CBDC through e-wallets.
In Ukraine, CBDCs should also appear using the ethereum platform. But it is still difficult to imagine how it will all work.