Central bank digital currency
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Digital Fiat Currency is the digital form of fiat money which is a currency established as money by government regulation or law. The term derives from the Latin fiat ("let it become", "it will become") used in the sense of an order or decree.[1]
Digital fiat currency is different from “digital currency” (also known as virtual currency and cryptocurrency) and “electronic money”, which are not issued by the state and lack the legal tender status declared by the government. The technology to issue digital fiat currency as part of central bank issued base money (or monetary base) has been conceived and created by eCurrency Mint Limited (eCurrency™), a company headquartered in Dublin, Ireland.[2]
Characteristics
Digital Fiat Currency (DFC) is a high security digital instrument, like paper bank notes, is a means of payment, a unit of account and a store of value.[3] And like paper currency, each unit is uniquely identifiable to prevent counterfeit.[4]
Digital fiat currency is part of the base money supply, together with other forms of the currency. It's a digital bearer instrument that can be stored, transferred and transmitted by all kinds of digital payment systems and services. The validity of the digital fiat currency is independent of the digital payment systems storing and transferring the digital fiat currency.[5]
Benefits and Impacts
Digital fiat currency is currently being studied and tested by governments and central banks in order to realize the many positive implications it contributes to financial inclusion, economic growth, technology innovation and increased transaction efficiencies.[6]
A secure and standard interoperable digital payment instrument issued and governed by a Central Bank and used as the national digital payment instruments boosts confidence in privately controlled money systems and increases trust in the entire national payment system.[7]
References
- ^ "Focus Group on Digital Currency Including Digital Fiat Currency". International Telecommunications Union.
{{cite web}}: Cite has empty unknown parameter:|1=(help) - ^ "Central Bankers Explore Response to Bitcoin: Their Own Digital Cash". Wall Street Journal.
{{cite web}}: Cite has empty unknown parameter:|1=(help) - ^ "Should the Riksbank issue e-krona?" (PDF). Sveriges Riksbank.
{{cite web}}: Cite has empty unknown parameter:|1=(help) - ^ "Medium Term Recommendations to Strengthen Digital Payments Ecosystem". Committee on Digital Payments: Ministry of Finance, Government of India.
{{cite news}}: Cite has empty unknown parameter:|2=(help); Text "http://mof.gov.in/reports/watal_report271216.pdf" ignored (help) - ^ "Central Bankers Explore Response to Bitcoin: Their Own Digital Cash". Wall Street Journal.
{{cite web}}: Cite has empty unknown parameter:|1=(help) - ^ "Canada Has Been Experimenting With A Digital Fiat Currency Called CAD-COIN". Forbes.
{{cite web}}: Cite has empty unknown parameter:|1=(help) - ^ "What should the future form of our money be?". Norges Bank.
{{cite news}}: Cite has empty unknown parameter:|2=(help); Text "http://www.norges-bank.no/en/Published/Speeches/2017/2017-04-25-dnva/" ignored (help)
Category:Currency
Category:Monetary reform
Category:Numismatics