The World Economic Forum (WEF) Report on CBDCs Interoperability

The World Economic Forum (WEF), published a report on interoperability and findings of three CBDCs. It found that they all are based on different concepts.

Many central banks across the globe are currently working on the Central Bank Digital Currency (CBDCs) to meet the growing demand for payment system advancements. However, the CBDCs was launched by Sweden, Thailand, and China. The WEF released its report on these matters.

WEF states that the CBDCs of China is dedicated to international payments. The Chinese CBDCs are primarily dedicated to cross-border remittances as well as B2B use cases. A special wallet allows you to access the Chinese CBDCs. China is currently developing mCBDCs payment methods. At this point, however, the Chinese CBDCs have been primarily used for retail purposes.

The Swedish CBDCs are very similar to Chinese CBDCs that are issued for retail payments. The government authorities have not made any announcements or provided information about the international payments system. They still created CBDCs that is dedicated to real-time gross settlement (RTGS). The Swedish CBDCs are keen to integrate the traditional framework into their payment infrastructure.

WEF discovered that the CBDCs in Thailand are different from the Chinese and Swedish CBDCs. Because it’s based on the Ethereum blockchain network.

WEF stated that these CBDCs are accessible worldwide, but in order to make international payments possible, we need to establish communication protocols and standards.

“If the central banks decide to allow cross-border CBDC access and want to facilitate interoperability between foreign CBDCs, it will need to establish communication protocols and standards that enable domestic and foreign CBDCs to exchange information seamlessly.”

Read More: Allianz Corporate Economist Mohamed El-Erian Says Bitcoin will not become a global currency

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