World’s oldest central bank, Sweden’s Riksbank, asserts that the central bank digital currencies, CBDC has little or no tendency of performing cash-like features, following a recent Bloomberg report. Thus deduced from its rigorous research and consistent study on the probability of a digital currency.<\/p>\n
Sweden’s Riksbank has gained eminent recognition in its steadfast research to satisfy the quests revolving around the system of digital currencies.<\/p>\n
Moreover, Sweden’s central bank seems to be swiftly embracing the idea of a digital currency as the bank appears to have gone deep in the journey than other central banks worldwide.<\/p>\n
Per the bank’s report, Riksbank explained that the issuance of a digital currency that is capable of complementing cash is dependent on the design i.e., either on a token-based design or account-based.<\/p>\n
However, the bank argues that either of the aforementioned criteria has no relevance in the matter. In other words, the design of a digital currency being token-based or account-based has no effect on its ability to function similarly to cash.<\/p>\n
As noted by the bank, a cash-like CBDC is expected to perform peer-peer transactions, be operated offline and anonymously. Meanwhile, such CBDCs would need to reconcile with one or more ledgers.<\/p>\n
The report reads;<\/p>\n
“…we argue that the tokens versus accounts distinction appears irrelevant<\/p>\n
if we are interested in whether a CBDC has these cash-like properties. This irrelevance<\/p>\n
originates from the fact that all CBDC payments will involve reconciliation with one or<\/p>\n
more remote ledgers.”<\/p>\n