According to Christopher Louis Tsu, the CEO of Venom Foundation, governments are not introducing central bank digital currencies (CBDCs) out of fear that privately issued digital currencies will become the preferred method for cross-border and micropayments. Instead, some countries see CBDCs as a way to improve economic and financial efficiency and enhance their competitiveness. Tsu believes that CBDCs, being backed by Regulation, can be a key requirement for mass adoption and Market harmonization. He argues that the issue lies not in the technology itself but in who controls it. Tsu points to the example of Paypal, a privately owned entity that can freeze or pause the transfer of its stablecoin if necessary. He suggests that central banks possess similar abilities to censor CBDC transactions.
CBDCs and Stablecoins
Tsu acknowledges that stablecoins like Tether are currently seen as the go-to digital currencies for cross-border transactions, but he believes that CBDCs may prove to be a better option due to their regulation. He argues that CBDCs, underpinned by regulation, are a requirement for mass adoption and market harmonization. Tsu emphasizes that CBDCs are not in competition with stablecoins, but rather complement them within the broader landscape of digital assets.
Improving Cross-Border Payments
Tsu acknowledges that cross-border payments can be complicated and expensive, with fees sometimes reaching as high as 6.5%. He believes that CBDCs can improve this situation, but also notes that technology and the private industry are developing faster than governments can implement CBDCs. He highlights the existence of various cryptocurrencies, stablecoins, and institutional Tokens that are already on the market and being used for cross-border transactions. Tsu suggests that by the time CBDCs are widely adopted, there will be proven applications and Wallets available for retail use.
Financial Inclusion and Micropayments
Venom Foundation is working with authorities in countries such as Kenya and Bangladesh to increase financial inclusion. Tsu emphasizes that micropayments are a crucial part of financial inclusion and can greatly benefit underserved populations. By using Blockchain and digital wallets, small farmers, refugees, and entrepreneurs can make low-cost cross-border payments and even save for the future through staking and earning interest on their savings. Tsu believes that digital wallets can provide opportunities for financial growth and stability for those who currently lack access to traditional banking services.
Concerns about Government Control
There are concerns that CBDCs may give governments greater control over people’s financial lives and transactions. Tsu notes that governments already have monitoring systems in place to combat money laundering and ensure compliance with regulations. He argues that it is not the technology itself that is invasive, but rather the policymakers who determine how the technology is used. Tsu points out that the ability to freeze accounts, decrease balances, confiscate funds, and mint new units of a digital currency already exists, both within government-controlled currencies and private entities like Paypal. He believes that design decisions and government policies will determine the level of control over CBDCs.
Conclusion
Christopher Louis Tsu, CEO of Venom Foundation, believes that governments are interested in introducing CBDCs not out of fear of privately issued digital currencies, but to improve economic and financial efficiency. Tsu argues that CBDCs, backed by regulation, are necessary for mass adoption and market harmonization. He highlights the potential benefits of CBDCs for cross-border payments, financial inclusion, and micropayments. Tsu also addresses concerns about government control over CBDCs, emphasizing that it is the policymakers who determine the level of control, rather than the technology itself..
#Governments #CBDCs #Making #Countries #Economically #Financially #Efficient #Venom #Foundation #CEO
CBDCs and Stablecoins
Tsu acknowledges that stablecoins like Tether are currently seen as the go-to digital currencies for cross-border transactions, but he believes that CBDCs may prove to be a better option due to their regulation. He argues that CBDCs, underpinned by regulation, are a requirement for mass adoption and market harmonization. Tsu emphasizes that CBDCs are not in competition with stablecoins, but rather complement them within the broader landscape of digital assets.
Improving Cross-Border Payments
Tsu acknowledges that cross-border payments can be complicated and expensive, with fees sometimes reaching as high as 6.5%. He believes that CBDCs can improve this situation, but also notes that technology and the private industry are developing faster than governments can implement CBDCs. He highlights the existence of various cryptocurrencies, stablecoins, and institutional Tokens that are already on the market and being used for cross-border transactions. Tsu suggests that by the time CBDCs are widely adopted, there will be proven applications and Wallets available for retail use.
Financial Inclusion and Micropayments
Venom Foundation is working with authorities in countries such as Kenya and Bangladesh to increase financial inclusion. Tsu emphasizes that micropayments are a crucial part of financial inclusion and can greatly benefit underserved populations. By using Blockchain and digital wallets, small farmers, refugees, and entrepreneurs can make low-cost cross-border payments and even save for the future through staking and earning interest on their savings. Tsu believes that digital wallets can provide opportunities for financial growth and stability for those who currently lack access to traditional banking services.
Concerns about Government Control
There are concerns that CBDCs may give governments greater control over people’s financial lives and transactions. Tsu notes that governments already have monitoring systems in place to combat money laundering and ensure compliance with regulations. He argues that it is not the technology itself that is invasive, but rather the policymakers who determine how the technology is used. Tsu points out that the ability to freeze accounts, decrease balances, confiscate funds, and mint new units of a digital currency already exists, both within government-controlled currencies and private entities like Paypal. He believes that design decisions and government policies will determine the level of control over CBDCs.
Conclusion
Christopher Louis Tsu, CEO of Venom Foundation, believes that governments are interested in introducing CBDCs not out of fear of privately issued digital currencies, but to improve economic and financial efficiency. Tsu argues that CBDCs, backed by regulation, are necessary for mass adoption and market harmonization. He highlights the potential benefits of CBDCs for cross-border payments, financial inclusion, and micropayments. Tsu also addresses concerns about government control over CBDCs, emphasizing that it is the policymakers who determine the level of control, rather than the technology itself..
#Governments #CBDCs #Making #Countries #Economically #Financially #Efficient #Venom #Foundation #CEO