#CBDCs have accelerated globally. People are moving to more cashless transactions and #centralbanks using CBDCs for access to money and policy.
It’s a pivotal moment in #financial services globally.
We’re glad we’re at the forefront of the tech and the thinking. $QNT

THREAD

1/27.03.2020.

We met the @federalreserve for a reason earlier this year based on the work we’re doing in #CBDC with #centralbanks.

2/10.08.2020.

We have a different #centralbank meeting in a couple of weeks. We’ve laid the foundation for #CBDC to run our infrastructure.

3/22.09.2020. https://twitter.com/cryptoseq/status/1308450669913878531

4/26.10.
For example, @bankofengland is updating their #RTGS in a program called RTGS Renewal. It is public.What they are looking to do is the next RTGS system is going to be #blockchain compatible.They’re not going to put it on blockchain because the tech is not there for it.

5/ It is not really designed for an #RTGS system. That is a separate high billability system. What that means is the future RTGS system is going to be able to talk digital
assets. That is important because that is where #CBDC is coming.

6/The view across the industry, and we have been working a lot with regulators, with #centralbanks, with the higher order of the #banking system, and the view is central bank #digitalcurrencies will be here, they are not a theoretical thing anymore.

7/What CBDCs will do is complement the money system because money is very difficult to move. If you are doing small transactions, you have to do reconciliation, you have to do taxation after profits. The settlement of money has to exchange hands and then move into different banks

8/ #CBDC is a way for people to have a government-backed form of money that is trusted, because it is backed by the CB. It is adopted, because the rails are already there, it’s just going to complement the payment and settlement rails that already exist,and all get tied into #RTGS

9/The architecture and the thinking behind #centralbanks, from our experience, there is going to be two types. There is going to be a central bank issued #wholesale CBDC. That CBDC will be large value, will be hundreds of millions, billions of pounds, or dollars or euros.

10/That will be issued to the banks or the commercial banks that are already regulated and supervised within the #RTGS system. Those commercial banks, what it allows them to do is issue #retail CBDCs. This is where the #synthetic services come in as well.

11/Then those #banks will have authorization to issue, if they have got 100 million wholesale #CBDC from the Central Bank, they can issue 100 million worth of #retail CBDCs and put it out into the system.

12/What this actually does is it allows those banks to free up #cash in the event of a downturn, in the event of some strain or risk to the #financial system, they do not have to constantly put up cash into the CB acc, they can actually transact with CBDCs...

13/... within the #banks themselves, within retail, they can also within interbank payments, use #wholesale CBDCs to settle differences between the banks themselves.

14/When they want to cash up and settle they can take the wCBDC and then settle with the CB and then get the cash injected into their account in net settlements on the CB accounts. It frees up cash, which is good for the economy...

15/because it allows the banks to do loans to businesses, to households, allows people to withdraw cash to spend, and also allows debit/credit cards to operate in the same way. It frees up the capital. CBDC plays not just a technical role,but a monetary role within the fin system

16/ #CBDC plays not just a technical role, but a #monetary role within the #financial system. It is there to complement the existing cash system, the existing low value retail and large value systems as well. It is a great tool to test monetary and other policies.

17/I think #CBDCs will be implemented and tested in the next year. We are going to see either wholese CBDCs or retail experimental CBDCs out there within the #payment systems to test and then we will have the mass adoption.

18/CBDC can also be used in the event of some stimulus to the economy. It’s very difficult for a government to give every citizen $1,000 today.
The amount of administrative overhead and the effort just to do that, it might sometimes even be easier to hand over a cash to people.

19/Having a #CBDC that everyone can access, and you just goes to your phone, and you have got a digital wallet within your custody bank, and you are off, you can go spend it within minutes, that is a huge economical boost to any economy.

20/With #Overledger we have taken all that into our design and our architecture to understand where is the market going, what do people need, and build something that that fits that requirement, rather than building another blockchain, another decentralized platform.

21/We have built in the mechanisms to be able to talk to the existing financial system.
#Overledger can connect to any API,any data source,any #banking traditional ledger,to a security system that does identity access management,to an existing database, SAP, Oracle,any blockchain

22/Our approach is to bridge, like a Cisco router. The way routers can connect different networks be it internal or external to other networks, #Overledger allows you to then have the applications and the data sources bridge between those different networks at the same time.

23/ #Overledger is like a Cisco router with Windows on top in analogy. Our approach is to complement existing #RTGS systems, allow it to talk without changing the RTGS system, because that is so mission critical,there is no downtime. They are all 24/7. $QNT