Central Bank Digital Currencies (CBDCs): Will Blockchain be the Future of Money?

Terms of use

Terms of Use

The use of this site and the content contained therein is governed by the Terms of Use. When you use this site you acknowledge that you have read the Terms of Use and that you accept and will be bound by the terms hereof and such terms as may be modified from time to time.

All text, graphics, audio, design and other works on the site are the copyrighted works of nasscom unless otherwise indicated. All rights reserved.
Content on the site is for personal use only and may be downloaded provided the material is kept intact and there is no violation of the copyrights, trademarks, and other proprietary rights. Any alteration of the material or use of the material contained in the site for any other purpose is a violation of the copyright of nasscom and / or its affiliates or associates or of its third-party information providers. This material cannot be copied, reproduced, republished, uploaded, posted, transmitted or distributed in any way for non-personal use without obtaining the prior permission from nasscom.
The nasscom Members login is for the reference of only registered nasscom Member Companies.
nasscom reserves the right to modify the terms of use of any service without any liability. nasscom reserves the right to take all measures necessary to prevent access to any service or termination of service if the terms of use are not complied with or are contravened or there is any violation of copyright, trademark or other proprietary right.
From time to time nasscom may supplement these terms of use with additional terms pertaining to specific content (additional terms). Such additional terms are hereby incorporated by reference into these Terms of Use.

Disclaimer

The Company information provided on the nasscom web site is as per data collected by companies. nasscom is not liable on the authenticity of such data.
nasscom has exercised due diligence in checking the correctness and authenticity of the information contained in the site, but nasscom or any of its affiliates or associates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this site. The information from or through this site is provided "as is" and all warranties express or implied of any kind, regarding any matter pertaining to any service or channel, including without limitation the implied warranties of merchantability, fitness for a particular purpose, and non-infringement are disclaimed. nasscom and its affiliates and associates shall not be liable, at any time, for any failure of performance, error, omission, interruption, deletion, defect, delay in operation or transmission, computer virus, communications line failure, theft or destruction or unauthorised access to, alteration of, or use of information contained on the site. No representations, warranties or guarantees whatsoever are made as to the accuracy, adequacy, reliability, completeness, suitability or applicability of the information to a particular situation.
nasscom or its affiliates or associates or its employees do not provide any judgments or warranty in respect of the authenticity or correctness of the content of other services or sites to which links are provided. A link to another service or site is not an endorsement of any products or services on such site or the site.
The content provided is for information purposes alone and does not substitute for specific advice whether investment, legal, taxation or otherwise. nasscom disclaims all liability for damages caused by use of content on the site.
All responsibility and liability for any damages caused by downloading of any data is disclaimed.
nasscom reserves the right to modify, suspend / cancel, or discontinue any or all sections, or service at any time without notice.

For any grievances under the Information Technology Act 2000, please get in touch with Grievance Officer, Mr. Anirban Mandal at data-query@nasscom.in.

New

See all

No notification found.

Central Bank Digital Currencies (CBDCs): Will Blockchain be the Future of Money?

FutureSkills Prime

@fsprimeofficial

September 20, 2023

Blockchain

The world of finance is rapidly evolving, and the advent of blockchain technology has opened up new possibilities for transforming traditional financial systems. Central Bank Digital Currencies (CBDCs) are gaining attention as governments and central banks explore the potential benefits of digitizing their national currencies. In this blog, we will delve into the concept of CBDCs and discuss whether blockchain technology could indeed pave the way for the future of money. We will also take a moment to explore an important technology skilling initiative in India called FutureSkills Prime.

Understanding CBDCs:

A Central Bank Digital Currency (CBDC) is a digital form of a country's fiat currency, issued and regulated by its central bank. Unlike cryptocurrencies such as Bitcoin or Ethereum, which operate on decentralized networks, CBDCs are centralized and aim to combine the benefits of traditional currency with the efficiency and security of digital transactions.

Blockchain Technology and CBDCs:

Blockchain technology, with its decentralized and immutable nature, holds great potential for supporting CBDCs. By utilizing a blockchain-based system, central banks can enhance the security, transparency, and efficiency of financial transactions. Blockchain can provide a trusted and tamper-proof record of all CBDC transactions, ensuring accountability and reducing the risk of fraud or double-spending.

Benefits of CBDCs:

1. Financial Inclusion: CBDCs can potentially improve financial inclusion by providing access to secure and low-cost digital payment services to individuals who are unbanked or underbanked.

2. Reduced Costs: By digitizing transactions, CBDCs can reduce the costs associated with printing, distributing, and securing physical cash. Moreover, the use of blockchain technology can streamline the entire payment ecosystem, resulting in faster and cheaper transactions.

3. Monetary Policy Implementation: CBDCs can offer central banks greater control and flexibility in implementing monetary policies. They enable real-time data collection, allowing policymakers to make informed decisions and respond to economic conditions more effectively.

About FutureSkills Prime Programme:

In the context of India's technology skilling landscape, it is essential to highlight FutureSkills Prime which is a collaborative effort by nasscom (National Association of Software and Service Companies) and MeitY (Ministry of Electronics and Information Technology), serves as India's technology skilling hub with the objective of transforming the nation into a Digital Talent Nation. The program facilitates widespread access to learning, empowering both students and professionals to enhance their digital expertise and professional competencies.

One noteworthy aspect of FutureSkills Prime is its comprehensive range of courses, including a wide array of blockchain-related courses. These courses cover various aspects of blockchain technology, such as blockchain fundamentals, blockchain security, and more. By offering specialized blockchain courses, FutureSkills Prime recognizes the growing importance of this transformative technology in the digital economy.

Conclusion:

Central Bank Digital Currencies (CBDCs) have the potential to revolutionize the financial landscape, offering benefits such as increased efficiency, financial inclusion, and improved monetary policy implementation. While blockchain technology presents a compelling solution for the implementation of CBDCs, there are still challenges to overcome, including privacy concerns, scalability, and user adoption.

Initiatives like the FutureSkills Prime, with their comprehensive range of courses, including blockchain education, play a vital role in developing the digital talent necessary to drive the adoption and implementation of blockchain technology. By empowering individuals with blockchain expertise, such initiatives contribute to the overall growth and development of a skilled workforce capable of embracing and shaping the future of money.

As governments and central banks continue to explore the possibilities, it is evident that blockchain has the potential to play a significant role in shaping the future of money. However, careful consideration, thoughtful implementation, and continuous skilling efforts are necessary to ensure the successful integration of CBDCs and blockchain technology into existing financial systems.

Disclaimer

That the contents of third-party articles/blogs published here on the website, and the interpretation of all information in the article/blogs such as data, maps, numbers, opinions etc. displayed in the article/blogs and views or the opinions expressed within the content are solely of the author's; and do not reflect the opinions and beliefs of NASSCOM or its affiliates in any manner. NASSCOM does not take any liability w.r.t. content in any manner and will not be liable in any manner whatsoever for any kind of liability arising out of any act, error or omission. The contents of third-party article/blogs published, are provided solely as convenience; and the presence of these articles/blogs should not, under any circumstances, be considered as an endorsement of the contents by NASSCOM in any manner; and if you chose to access these articles/blogs , you do so at your own risk.

FutureSkills Prime

A skilling ecosystem focused on emerging technologies, powered by a partnership between the Ministry of Electronics and Information Technology, Government of India, nasscom, and the IT industry. It seeks to propel India to become a global hub of talent in emerging technologies.