NEW MONEY

The Peo­ple’s Bank of China is one of a hand­ful of cen­tral banks all over the world cur­rently pon­der­ing the pos­si­bil­ity of is­su­ing a dig­i­tal ver­sion of a coun­try’s cur­rency. Here is why this might be a game changer

Singapore Tatler - - INDUSTRY INSIDER -

1. Bet­ter over­sight

Pri­vate op­er­a­tors of­fer­ing pay­ments plat­forms have pro­lif­er­ated in re­cent years, in some cases ful­fill­ing func­tions such as giv­ing loans that used to be the purview of banks. A cen­trally is­sued dig­i­tal cur­rency may lead to bet­ter reg­u­la­tory man­age­ment over dig­i­tal trans­ac­tions.

2. In­creased ac­ces­si­bil­ity

Dig­i­tal cur­rency is po­ten­tially eas­ier to distribute and ac­cess than pa­per cur­rency, since phys­i­cal in­fra­struc­ture such as ATMS would be re­placed by the likes of dig­i­tal wal­lets on smart­phones.

3. Rad­i­cal trans­parency

Pay­ing in cash leaves no pa­per trail, fig­u­ra­tively speak­ing. The ease of track­ing dig­i­tal cur­rency could lead to a whole new level of rad­i­cal trans­parency, help­ing to elim­i­nate black mar­ket trans­ac­tions. But that could also mean cit­i­zens may lose a lot of pri­vacy when it comes to their fi­nan­cial ac­tiv­i­ties.

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