The founder of Cypherium is optimistic that before long, it will be possible to conduct CBDC transactions from one country to another.
The founder of Cypherium blockchain, Sky Guo, has made a forecast that CBDC’s use across borders will not take long. He said it will be “in the next couple years” or “even sooner”.
Guo made this prediction three days ago. He cited the works done by some countries in the European Union, America, and China and said that they may be the first to use the CBDC among themselves owing to the level of progress so far.
Problems with CBDC transactions across borders
Countries that have started developing their digital currencies are testing it within themselves. For example, the Chinese transportation company, Didi, is working with the Digital Currency Research Institute of China’s central bank to develop the digital yuan. If the digital yuan has to be used outside China, then this test should cover other countries.
Guo also intimated his listeners that some countries were developing their CBDCs quite differently from others. He said that if CBDCs are to be used globally, they should have a common payment system and technology:
“CBDCs generally fall into two categories: retail and wholesale. Retail CBDCs are used for daily purchases and wholesale CBDCs are for bank to bank transactions which have low traffic.”
The way out
Guo said that using the Cypherium blockchain to develop CBDCs that will work across borders is possible because Cypherium combines both proof-of-work (PoW) and HotStuff consensus algorithms.
Guo has been able to attend several meetings owing to his position as one of those that are starting the OMFIF Digital Monetary Institute. He has discussed with De Nederlandsche Bank, Banque de France, European Central Bank, the Digital Currency Research Institute for China’s central bank, and many others.
OMFIF, a forum for central banking, will soon start the Digital Money Institute. The goal is to eliminate the differences in the methods applied by different countries interested in digitalizing their currencies.