While RBI is planning to implement a trial program for CBDCs in India in December, blockchain-liquidity focussed Atom Foundation took a step ahead on September 16 and announced the not-for-profit launch of CBDCS (Central Bank Digital Currency Secure Coin) with a reportedly threefold improvement and lifetime free license, edging over conventional CBDCs (Central Bank Digital Currencies).
“All the current CBDC projects are not secure and have zero protection against volatility, price manipulation, hacking, and loss of funds,” said Yoda Regev, CEO at Atom Foundation. “Our CBDSC, when compared to stablecoin or current CBDC solutions, is equivalent to comparing smartphones and the telegraph and will allow issuers more leeway to directly implement economic policy on the blockchain, and guard against currency volatility and mismatch.”
Essentially, CBDCs are legally recognised digital/virtual currencies that the central bank issues, just like fiat currency. Backed by the apex bank (RBI, in India), CBDCs are interchangeable with normal currencies, holding the exact same value.
What are these CBDSCs?
CBDSCs is a new, patent-pending stablecoin alternative technology that will allow governments and central banks to maintain a unique monetary policy on top of existing CBDCs.
Digitising fiat currencies, CBDCs are exposed to the same pressures as the normal ones, including market volatility and loss of funds. But CBDSCs, as reports suggest, come with a built-in fluctuation freeze, eliminating any chances of volatility, driving value by pegging it to a pricing index that it is unable to deviate from, irrespective of the market volatility.
It also comes with enhanced protection features like a unique regulation layer that provides for timely fund recovery, cautioning against bad or potentially defaulting financial actors, and privacy-based zero-knowledge proof.
CBDSCs also allow for freezing funds, monitoring and taxing income amongst others, in case of fraud. They also offer increased flexibility of regulation in terms of implementing a new, updated currency policy without the need to recall or commensurately reissue a new version of the currency, in order to extend any functionality or policy.Internet Explorer Channel Network