To reduce the suffering of cross-border financial payments, the Central Bank of the United Arab Emirates (CBUAE) and the People’s Bank of China (PBoC) joined the CBDC initiative, according to the Hong Kong Monetary Authority (HKMA) and the Bank of Thailand (BoT). Tuesday, February 23.
The CBDC project and initiative has attracted many central banks to blockchain across Asia, which will make the regulation process easier.
The initiative and central bank digital currency project are supervised by the Hong Kong Monetary Authority (HKMA) and the Bank of Thailand (BoT).
Recently, and as the title of the article came, the Central Bank of the UAE and China joined this initiative to explore the possible facilities for digital currencies for central banks and the use of blockchain technology in cross-border transfers.
In light of the announcement, the current stage is the stage of exploring the digital currency of the Central Bank, based on the “Inthanon-LionRock” research project, after which a PoC form will be established, which according to what the source reported on:
Facilitating real-time cross-border payment transactions in foreign currency in a multi-disciplinary context and on a 24/7 basis.
The CBDC initiative explicitly focuses on solving the difficulties a user encounters while paying across borders.
In addition, complex regulations and cost shortcomings are addressed.
Earlier, Mr. Matthi Subabungsi, Deputy Governor of Bank of Thailand said:
The proposed model introduces a network allowing cross-border transfers where participants can transfer funds instantly on a peer-to-peer basis in an instantaneous manner.
The project design has new dimensions that will assist central banks in their endeavor.
The inclusion of central banks in Asian countries in the central bank digital currency project would lead other financial sectors to join the same path.
If what “subabungsi” implies, the adoptions will create a transparent and stimulating environment for CBDC currencies and help integrate financing outside of Asia as well.
The growing appearance of blockchain has forced a large number of government authorities to obtain a digital alternative to digital currencies such as Bitcoin and associated currencies.
Due to the highly technical nature of the digital market, government sectors will find it difficult to track and monitor the flow of digital assets, but if it keeps pace with the development, it is possible for CBDC currencies to have a strong position in the future of digital currencies.