The CEO and Founder of Cypherium blockchain, Sky Guo, recently said that he believes the central bank digital currency (CBDC) based international payments would start happening in the coming years or maybe even sooner. Sky also said that the development happening of CBDC in the central banks of many countries would make way for many countries in the European Union as well as the United States and China are leading in the international payments across borderlines. At the rate in which the developments are taking place in this field and the interest of the banks to make CBDC a reality is what gives hope that the cross-border payments would soon become a common mode of making payments in the near future.
There are many countries across the globe that is domestically experimenting with the CBDC by launching pilot projects. One such example is Didi, a ride-sharing company that has partnered with the respected Digital Currency Research Institute of China. It is what makes the cross-border payment through CBDC in the future inevitable, said Sky Guo. However, he did mention that there is one hurdle in the process that is the different technology and regulatory parameters used by different countries with respect to CBDC. Sky Guo said that the central banks of different countries should work together to solve the interoperability features, which can otherwise cause a range of issues. Unless these interoperability issues are resolved, the CBDCs of different countries wouldn’t be able to interact and adapt to different systems and technology, making the global adoption or cross-border payments almost impossible.
Sky Guo said that there are two categories of CBDCs, namely retail CBDCs and wholesale CBDCs. The retail CBDCs are primarily used for daily purchases by retail investors, whereas the wholesale CBDCs can be used for bigger transactions, mainly by the banks and similar financial institutions. Coming with the solution, Sky Guo said that Cypherium blockchain, made by combining HotStuff combination and Proof-of-Work or PoW algorithms, provides a solution that enables cross-chain interoperability for Central Bank Digital Currency.
Sky Guo is among the most noted figures in the crypto world and is also part of the OMFIF Digital Monetary Institute. He has been part of the many virtual roundtables and conferences with the People’s Republic of China, De Nederlandsche Bank, Digital Currency Research Institute, Banque De France, and European Central Bank, along with many others leading names in the crypto and financial world. Sky Guo believes that banking and financial institutions have to work together to bridge the gap between the traditional banking system and digital currencies. It is, for this reason, the global mind behind the central banking system, OMFIF has launched the Digital Money Institute.
The main purpose of the Digital Money Institute is to engage in market research and study the issues and problems that the digital currencies are facing globally, and make its adoption easier, not only by the retail investors but by institutional investors and financial organizations.