(by Sikh For Truth | TruthTalk.UK) – Unlike cryptocurrencies, which are private, Central Bank Digital Currency (CBDC) will be issued and controlled by the central banks themselves. In many ways, it’s the same as banknotes, but it’s likely that every single transaction will be monitored for compliance.
On Friday 14th October, the IMF streamed a live video on YouTube called “Central Bank Digital Currencies for Financial Inclusion: Risks and Rewards.”
Speakers were Her Majesty Queen Máxima of the Netherlands, who’s also the UN Secretary-General’s Special Advocate for Inclusive Finance for Development. Kristalina Georgieva, Managing Director, IMF, and Bo Li, Deputy Managing Director, and Cecilia Skingsley the BIS Innovation Hub Director.
It was all about global financial inclusion, which they said has improved over the past ten years, but almost a quarter of the world’s adult population is still unbanked. It is hoped that central bank digital currencies would be affordable, widely accepted, and safe instruments, which would address some of the issues surrounding financial inclusion, among other things.
With 2619 views, the live stream went under the radar for many. Our buddy Tim Hinchliffe over at The Sociable kept an eye on what was going on. Tim posted a video of Bi Li, the Deputy Managing Director of the IMF, explaining how CDBSs can be programmed.
Governments & private sector can use #CBDCs to program smart contracts for target policies (e.g., Welfare Payments, UBI, Consumption Coupons, Food Stamps). CDBC can be programmed to determine what people can and cannot own. #IMF #CBDC pic.twitter.com/3pEykxc1Au
— Sikh For Truth (@SikhForTruth) October 15, 2022
The video got over 405K views, and the tweet thread got 222K impressions and 1722 retweets from people like @OffGuardian0, @_InThisTogether, and @Jennifer_Arcuri. If this doesn’t make news, I don’t know what will. I told my colleagues at TruthTalk this is big.
According to Bi Li, a CDBC can improve financial inclusion by allowing government agencies and private sector players to program, to create smart contracts.
Smart contracts are programs stored on a blockchain that run when predetermined conditions are met. Most of the time, they’re used to automate agreement execution, so everyone knows the outcome right away, without any intermediaries.
“The smart contract would allow targeted policy functions, like welfare payments, consumption coupons, food stamps, etc. With CBDCs, we can precisely control what people can and can’t own. Also, what kind of use this money can be programmed for, like food only.” – Bi Li
“Introducing a #CBDC is not a universal solution. It has to come in a package with digital and financial literacy and identity, among other things. For that, public and private sectors have to work together.” Cecilia Skingsley, #BISInnovationHub Head #IMFMeetings #DigitalMoney pic.twitter.com/zYJSD9ir8Q
— Bank for International Settlements (@BIS_org) October 14, 2022