CBDC Central Bank Digital Currency on Ethereum Blockchain

Central Bank Digital Currencies (CBDCs) were the subject of debate at the 2020 World Economic Forum.ConsenSys has released an official document outlining practical proposals for launching a CBDC based on the Ethereum blockchain:

«We propose that central banks launch a CBDC on the large, private Ethereum blockchain, in which central bank-appointed intermediaries will act as nodes».

The main goal of central banks in implementingdigital innovation - maintain control over money. According to the whitepaper, using an Ethereum-based blockchain will help maintain control over the movements of CBDC:

«The Ethereum public network isopen ledger, it can provide enterprise-grade security and performance. We believe that the private public Ethereum blockchain is the best platform to meet CBDC requirements.

The ConsenSys white paper emphasizes,that the Ethereum blockchain will allow central banks to seamlessly “authorize and deauthorize” network participants, the private Ethereum blockchain using Proof-of-Authority (PoA) consensus could offer “real-time asset transfer” at a very low cost.

Central banks will be able to create tokens on top ofEthereum, the emission and burning of which will remain under their control. In addition, the PoA consensus is not too energy intensive and, therefore, is able to work at low energy costs and will not have a negative impact on the environment.

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The official document also includes a preface by ConsenSys CEO Joseph Lubin:

&#171;CBDC has a number of advantages.They can play a key role in the digital asset revolution by doing it in a regulated and least risky way. CBDCs have the potential to make financial markets more efficient and accessible to people around the world.

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