The Central Bank of Russia has released an analysis report on the potential pros and cons of the central bank digital currency CBDC.
CBDC is a digital currency issued by the central bank that holds fiat currency and other financial assets. In a report titled Is There a Future for Central Bank Digital Currency, the Central Bank of Russia pointed out the potential benefits of CBDC as reducing transaction costs in the economy, providing low risk and high liquidity assets. Technically, it is said that transaction costs can be minimized only when it is possible to provide a tool that is superior to fiat currency and debit cards in terms of payment and storage.
The Russian Central Bank acknowledged the CBDC’s ample strengths, but pointed out the lack of anonymity as its only potential drawback. Banks are saying that CBDC cannot provide the same level of anonymity as cash. It points out that CBDCQ cannot provide virtually cash-equivalent anonymity, which is certainly an advantage for regulators, but it will be seen as a disadvantage not only for users engaging in suspicious activities, but also for privacy-conscious users.
Not long ago, the World Economic Forum issued a report stating that at least 40 central banks around the world are planning an experiment on CBDC. In addition, a survey conducted by the International Settlement Bank revealed that 70% of central banks in the world are conducting a survey on the issuance of CBDC. In early April, the deputy governor of the Central Bank of Pakistan announced that it was aiming to issue digital currencies by 2025. Related information can be found here .