After the credit crisis of 2009, prominent economists spoke out that the same thing would happen if the payment-only function, called narrow banking, was not separated from the banking industry.
The ATM and card-based financial system is inefficient and expensive to maintain, and those at the bottom of the world are still being pushed out of the mainstream payment system. Also in developed countries, the policy of distributing COVID-19 subsidies to all citizens, free of charge or at a low cost, can be implemented as soon as the law is passed, with the CBDC platform.
The CBDC is a generic term for the digitalization of legal tender, or digital currency, which is recognized as legal tender by a group of 19 countries or EU member states. Together with the concept of a universal currency, called Bancoa, which Lord Keynes proposed in the 1940s at the same time as the establishment of the World Bank and the IMF, we would have the strongest CBDC platform.
This is a dreamy, next-generation platform for people who don’t want to spend cash from infectious disease viruses, or who have problems with card merchant fees and payment sites.
For CBDCs, the required 11 criteria are set out in the November 2018 IMF publication,
We are helping developing countries that are trying to catch up with Estonia with a functional system that includes not only the IMF’s standards, but also those of the BIS and those considered necessary by prominent financial and economic scholars.