Central banks in Canada, Singapore and the UK issued a joint report, which indicated the release of the state of cryptocurrency as a way of optimizing cross-border payments. As arguments the authors of the report indicated constant availability, anonymity, and the absence of risks associated with counterparties. In the preparation of the report has also involved commercial banks: United Overseas Bank, HSBC, Toronto-Dominion Bank and Oversea-Chinese Banking Corporation.
In the report, the state of cryptocurrencies is divided into two main groups: the distributed retail (CBDC’s) and wholesale (W-CBDC’s). The latter, in turn, can be used within the three models of turnover, depending on geographical location and legislation.
The first model provides for the wholesale production and distribution of cryptocurrency private to a specific physical currency. Thus, this asset can be used only on the territory of the issuing state, but not outside of it. Commercial banks will need to open a local cryptocurrency wallets while Central banks from different countries to work with multiple state W-CBDC.
The second model describes the state money with Vietnam software that could be used for payments on the territory of other countries. In this model, Central banks would be required to legalize a few licenzirovanie currency units. Commercial banks would be enough to have multiple wallets for different W-CBDC at their home Central banks.
Finally, the authors propose a model in which universal W-CBDC-token is supported by several Fiat currencies, and therefore, can freely turn on a global scale. However, this model has drawbacks:
“[…] Since we are talking about ensuring the currency basket, the asset will be subject to volatility and, potentially, manipulation and investment operations. In addition, according to the preliminary analysis, the real W-CBDC can be limited due to the complexity of the process of adding new currencies in the basket security”.
However, in General, in the report the transition to the state of cryptocurrency as a means of international payments was assessed as a progressive step that can solve many problems. A similar statement was made during the Singapore Fintech Festival the head of the International monetary Fund (IMF), Christine Lagarde (Christine Lagarde), urging the governments of different countries to further explore the prospect of implementation of the crypto currency.