Nations worldwide are rushing towards CBDC development. HashCash Chief Raj Chowdhury puts the spotlight on the need for a balance between user privacy and surveillance.
PALO ALTO, Calif., Sept. 5, 2022 /PRNewswire-PRWeb/ -- Over half of the nations are already deeply involved in Central Bank Digital Currency (CBDC) development projects. The CBDCs utilize cryptocurrencies' underlying technology for facilitating instant money transfers at much cheaper processing costs with asset valuations backed by the nation's Central Bank itself. HashCash Consultants CEO Raj Chowdhury acknowledges CBDC's potential but warns of the possible dangers of CBDC's centralized storage.
The CBDC concept is revolutionary in its design leading to the complete dematerialization of fiat money. The eCurrency will facilitate and perform all the roles one would normally expect from money-act as an intermediary medium of exchange, settling transactions, and debt. Research projects on the digital tokenization of currencies backed by national central banks are ongoing all over the world, with China being the pioneer. Examples of other nations involved in CBDC development or are using it, include India, the EU, Russia, the Bahamas, Nigeria, and more.
The HashCash Chief, a notable blockchain pioneer, states, "CBDC projects need to address their drawbacks and act considering the potential side-effects. They may lead to the disintermediation of the nation's banking sector, and lend the government an upper hand in state-sponsored censorship of a citizen's spending patterns."
Protests from the global crypto community have fallen on deaf ears as governments continue to march forward with R&D in CBDC. On the other hand, the imposition of strict crypto regulation and consequent taxation deters retail investors from investing their assets in crypto. Meanwhile, a recent survey indicated almost 60% of the world's top business corporations already utilize cryptocurrencies in one form or another, mainly for remittance and transaction settlement.
"The working principles of CBDC are converse to the ideals behind Bitcoin and blockchain technology. A centralized storage system has grave security risks, which will likely diminish the anonymity and privacy normally associated with conventional cash or crypto transactions," concluded Chowdhury, who had previously suggested infrastructure upgradation for handling crypto investigations, and how blockchain can revolutionize Sustainable Energy Management.
Led by Chowdhury, the US-based HashCash is a global frontrunner winning multiple awards in blockchain development and deploying products and services in over 26 nations across 6 continents. Hashcash crypto exchange, Paybito is acknowledged as the best white-label crypto exchange software provider globally. The company recently offered its critically-acclaimed white label crypto exchange solutions to a fintech corporation in Vietnam. HashCash also provides blockchain-powered supply chain and traceability solutions worldwide and plans to venture into Metaverse development by 2023.
While CBDC development guarantees the integral involvement of blockchain technology, there are several constraints and limitations that nations need to consider. Even keeping scalability challenges aside, the leading central banks must conduct extensive research before a launch.
- About Raj Chowdhury:
Raj Chowdhury is the Managing Director of HashCash Consultants and a Blockchain pioneer. Raj pioneered the first interbank Trade Finance and Remittance implementation of Blockchain Technology between two of the largest global banks. Raj is a prominent voice in the Blockchain and Cryptocurrency space and actively engages with policymakers in this area. He is a contributor to Economic Times, Business World, and CNNMoney and advises industry leaders in the adoption of Blockchain. He is a member of Asha Silicon Valley, a nonprofit committed to education for children in emerging countries. Author of the book 'The Dark Secret of the Silicon Valley', Raj is an investor in blockchain and cryptocurrency companies and an active member of the philanthropic community.
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COLEEN F, Hashcash Digest, +14159662907, [email protected]
SOURCE HashCash
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