Central bank digital currency and Private sector: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Add link.)
 
imported>Doug Williamson
m (Categorise.)
 
Line 1: Line 1:
(CBDC).
The private sector is the part of the economy which:


A CBDC is a digital currency issued and administered by a central bank.
*Is not owned or controlled by the government; and
*Consists of organisations established to make a profit.


For example, the Bahamanian Sand Dollar.


 
The private sector includes both private equity and 'public' companies.
Important potential benefits of CBDCs include:
* Speed
* Transparency
* Reduced costs
* More efficient cross-border remittances
 
 
:<span style="color:#4B0082">'''''Bank of England considering CBDC'''''</span>
 
:"A Central Bank Digital Currency (CBDC) [in the UK] would allow households and businesses to directly make electronic payments using money issued by the Bank of England.
 
:We have not yet made a decision on whether to introduce CBDC.
 
:The Bank [of England] provides physical money in the form of banknotes, which can be used by households and businesses to make payments.
 
:We also provide electronic money, but this can only be used by banks and selected financial institutions.
 
 
:A Central Bank Digital Currency would make electronic money, issued by the Bank of England, available to all households and businesses.
 
:This would allow everyone to make electronic payments in central bank money.
 
:... CBDC is sometimes thought of as equivalent to a digital banknote, although in some respects it may have as much in common with a bank deposit.
 
:Any CBDC would be introduced alongside – rather than replacing – cash and bank deposits."
 
:''Bank of England - 2020.''
 
 
:<span style="color:#4B0082">'''''Improving cross-border payments'''''</span>
 
:"Many central banks are researching CBDC, and there are clear opportunities for CBDCs to improve cross-border payments and protect monetary sovereignty."
 
:''Bank for International Settlements, Paper 115 - March 2021''.
 
 
:<span style="color:#4B0082">'''''Supporting new technologies'''''</span>
 
:"The introduction of a [UK] Central Bank Digital Currency would be a significant development which could help support the adoption of new technologies (e.g. blockchain) in financial services.
 
:There is concern that retail CBDC could lead to increased data being held on the consumer. One option would be to follow the proof of concept developed by the European System of Central Banks, which explored allowing users to remain anonymous for low value transactions, but still maintaining AML/CTF checks for larger transactions, and ensuring that identity and transaction history were not available to central banks or the intermediaries."
 
:''Kalifa Review of UK Fintech - February 2021''.






== See also ==
== See also ==
* [[Account]]
* [[Charitable status]]
* [[Altcoin]]
* [[Mutual]]
* [[Anti money laundering]] (AML)
* [[Not-for-profit]]
* [[Bank of England]]
* [[Private equity]]
* [[Bank for International Settlements]]
* [[Profit]]
* [[Bitcoin]]
* [[Public company]]
* [[Blockchain]]
* [[Sector]]
* [[Britcoin]]
* [[Taking private]]
* [[Central bank]]
* [[Third sector]]
* [[Central bank money]]
* [[Commercial bank money]]
* [[Countering terrorist financing]] (CTF)
* [[Crypto-assets]]
* [[Cryptocurrency]]
* [[Cryptography]]
* [[Currency]]
* [[Deposit]]
* [[Digital currency]]
* [[Digital euro]]
* [[Distributed ledger]]
* [[e-krona]]
* [[e-money]]
* [[Ether]]
* [[European System of Central Banks]]
* [[Fiat currency]]
* [[Gold standard]]
* [[Libra]]
* [[Monetary]]
* [[Money]]
* [[Multi-CBDC arrangement]]
* [[Proof of concept]]
* [[Ripple]]
* [[Sand Dollar]]
* [[Sovereignty]]
* [[Stablecoin]]
* [[Wholesale central bank digital currency]] (wCBDC)
 
 
==External links==
* [https://www.bankofengland.co.uk/paper/2021/new-forms-of-digital-money New forms of digital money - Bank of England - June 2021]
 
* [https://www.bankofengland.co.uk/research/digital-currencies Central bank digital currencies - Bank of England]
 
* [https://www.bis.org/about/bisih/topics/cbdc.htm Bank of International Settlements, Central Bank Digital Currency]
 
* [https://www.youtube.com/watch?app=desktop&v=srJMnI8WFRY ACT Webinar, Central Bank Digital Currencies, Overview of the Bank of England's Work, March 2021]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:The_business_context]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Cash_management]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]
[[Category:Technology]]

Revision as of 09:26, 14 March 2018

The private sector is the part of the economy which:

  • Is not owned or controlled by the government; and
  • Consists of organisations established to make a profit.


The private sector includes both private equity and 'public' companies.


See also