Institutions such as central banks have always played a pivotal role in shaping the financial ecosystem around us. With the advent of new technologies, traditional banks are now considering a transition to disruptive models.
If recent reports are to be believed, popular blockchain analytics organization CipherTrace was looking to team up with central banks by launching a native central bank digital currency [CBDC] initiative.
CipherTrace also intends to launch an outreach effort along with the development of the CBDC. The company jumped into the CBDC bandwagon because of some of the evidence set out by the Bank of International Settlements [BIS].
According to the BIS, more than 80 per cent of the world ‘s banks were looking at the concept of centrally monitored virtual assets. This knowledge has caused companies like CipherTrace to rush to market products that appeal to institutions.
CipherTrace Chief Financial Analyst [CFA] John Jefferies confirmed that the company had multiple strategies underway at the same time. Jeffries has added:
“It takes a little while for people to understand that the traceability you get with digital currencies is far beyond what you can get with the traditional fiat.”
Jeffries also added that the latest CipherTrace initiative will focus on influencing the values that guide all development processes. These processes will include the establishment of anti-money laundering and security safeguards related to CBDCs.
Both Jeffries and CipherTrace CEO Dave Jevans believe in a transactional policy for citizens where governments can not control individual properties. Regions like China have become infamous in the cryptocurrency industry because of the hidden agenda behind the initial digital yuan. Blockchain technology will be applied to the CBDC architecture, which will become the next pillar for blockchain adoption.
CipherTrace also wants to bring the attention of banks to loopholes in the security framework