As we enter 2023, the global CBDC process is picking up speed.
According to public reports, in December 2022 alone, several national banks and international organizations, including the Federal Reserve, the Central Bank of Turkey, the Central Bank of Brazil, the Central Bank of Kazakhstan, the International Monetary Fund, and the Philippines, announced their latest progress of CBDC.
Michael Greco, Director of Policy Research for the Federal Reserve’s “Digital Dollar Project,” said in an interview that the issuance of digital dollars in the United States is not a matter of feasibility, but a matter of time. The Fed is waiting for Congress to initiate legislation on CBDC, Greco does not expect Congress to pass such a law next year, but he believes that in 2023, the digital dollar project will make progress, especially in terms of privacy.
The Central Bank of Turkey (CBRT) has completed its first test of its Turkish digital Lira, and in the first quarter of 2023, the CBRT will continue to conduct small-scale, closed-loop pilot tests of the application with technology stakeholders. By 2023, the Turkish digital Lira will enter an advanced stage where the CBRT will conduct pilot tests with broad participation, including banks and FinTech companies.
Brazil’s Central Bank Governor, Roberto Campos Neto, said that he plans to launch CBDC in 2024 and said that he will work with a number of financial institutions on pilot programs before starting to use CBDC more widely.
Kazakhstan’s Central Bank Proposes to launch an internal CBDC as early as 2023, with a phased expansion of functionality and commercial operations by the end of 2025.
The International Monetary Fund (IMF) announced plans to create CBDCs in partnership with Bangko Sentralng Pilipinas (BSP), the Central Bank of the Philippines.
In 2022, the global CBDC rapidly developed, and the industry generally believes that the CBDC adoption will continue to grow at a high rate in 2023. In the process of CBDC implementation by the Central Banks of the Philippines, the UK and Spain, we can see that global central banks still have many outstanding problems in issuing CBDC. As a global e-money and cashless payment pioneer, ACU Group has advanced technology and accumulated rich experience in the field of financial technology, and will be a powerful assistant to the global central banks in issuing CBDC.
ACU Group will provide a complete set of solutions from design, research and development to operation and promotion to help partner countries issue CBDC according to the needs of global central banks,and guarantee the security and stability of the system. In addition, ACU Group has been deeply involved in the field of FinTech for many years and can provide solutions that meet the needs in terms of compliance and liquidity. ACU Group will set up appropriate KYC (Know Your Customer) and CDD (Customer Due Diligence) processes according to the specific requirements of issuers and in accordance with local laws and regulations to guarantee the security of assets and accounts and solve the technical worries for global central banks.
Realize CBDC Circulation
In conjunction with CBDC issuance, ACU PAY, the electronic payment program of ACU Group, will realize CBDC global payment. ACU PAY, developed by ACU Group, is one of the world’s leading integrated electronic money wallets for payment and wealth management. ACU PAY is unique in adopting blockchain technology, cross-border trade settlement, and bridging legal tender and electronic money channels. To complement wholesale CBDCs, ACU PAY is added to the ACU*HSG dual currency banking system, which enables legal tender and e-money conversion and supports both traditional banking and emerging e-money conversion businesses. For retail CBDCs, ACU PAY supports QR codes for payment and receipt, uses multi-layer algorithms for encryption, records transaction information, ensures data security, and provides users with a safe and convenient way to transact.
Promotion and Training
In addition to technical support, ACU Group will provide training and promotion services to partner countries. ACU Group will provide targeted training to financial institutions based on the CBDC design model and the functions of each financial institution, so as to eliminate the barriers to the use of CBDC from the source and effectively increase the use of CBDC. For the general public, ACU Group will cooperate with the central bank and financial institutions to provide a variety of preferential activities, so as to provide personalized preferential activities for the public in each country, in order to enhance the public’s awareness of CBDC, so that they will be more willing to accept and use CBDC, and make CBDC truly “universal” to the public.
Currently, ACU Group is providing CBDC development programs to countries in the African region, where FinTech development is weak, and in 2023, ACU Group will keep pace with the world to provide the necessary support to more countries in need to reduce regional differences and improve global FinTech development.