Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

Rumor: Hedera (HBAR) Working On The Digital Dollar With The Central Bank?

Cryptocurrency Mar 25, 2021 04:00AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
Rumor: Hedera (HBAR) Working On The Digital Dollar With The Central Bank?
 
BA
+4.03%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
GOOGL
-0.54%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
IBM
-0.33%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
GOOG
-0.44%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DTEGY
+0.44%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
ETH/USD
-0.99%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

  • The U.S. Federal Reserve has announced that it is assessing a central bank digital currency (CBDC).
  • The central bank has released the preconditions necessary for the launch of the digital dollar.
  • Hedera is one of the platforms rumored to be potentially working on the CBDC.
  • Hedera is backed by Google (NASDAQ:GOOGL), IBM (NYSE:IBM), Boeing (NYSE:BA), and LG Electronics.

One major buzz in the crypto space has been around the launch of a central bank digital currency (CBDC). According to a Bank of International Settlements report, more than 80% of central banks around the world are already researching the prospects of a CBDC.

Central banks are playing catch up as most global payments are now digital, and many companies are accepting cryptos. However, a central bank digital currency would provide low-risk, central-bank-backed money – think of it like regular cash, only updated for the digital financial system.

Countries like China and Sweden are leading the way to the launch of a CBDC. The United States has not been left behind, with Federal Reserve Senior Counsel Jess Cheng outlining, in February, some preconditions for a digital dollar.

The Federal Reserve And The Move Toward A CBDC

In September 2020, two congressmen, French Hill and Bill Foster, penned a letter inquiring if the central bank had explored the possibility of a CBDC and, if it hadn’t, urging it to consider doing so. The central bank has not only caught up but has also released the preconditions for a CBDC.

According to the Federal Reserve, any CBDC will require technology that safeguards the system’s integrity and supports operational robustness and resilience. Since the release of the Fed’s note, there have been rumors about which networks could be used for the task, with much speculation focusing on Hedera.

There have been questions since as early as February 2020 concerning the possibility of the digital dollar being built on Hedera. Redditors have both asked about and detailed the possibility of central banks building on Hedera.

Hedera has previously been mentioned by countries looking to launch a CBDC. Hedera’s first mention goes as far back as December 2019. In 2019, the National Institute for Smart Government (NISG) published a draft of India’s National Strategy on Blockchain.

The NISG proposed a Central Bank Digital Rupee (CBDR) on a public-permissioned blockchain. The draft proposed that the national blockchain should make use of a private version of the blockchain, like the Hedera Hashgraph. This suggests Hedera could be very capable of handling the digital dollar.

On the Flipside

  • The journey hasn’t always been smooth for Hedera, with the project running into troubles during its breakout year.
  • In December 2019, reports stated that some of Hedera’s nodes had gone offline without warning, leading to suspicions that the network is more centralized than other cryptos.
  • Following claims that 4 out of 10 council nodes were down, some community members proceeded to dump the token.

Why Hedera?

Hedera Hashgraph is one of those lesser-known cryptos making its way onto the big stage. The enterprise behind the project, Hedera, is aiming to solve real-world transaction problems with blockchain.

The project is perhaps best known for offering native token issuance and configurability without smart contracts, making it similar to Ethereum, Polkadot, and Cardano, yet Hedera Hashgraph remains unique.

Hedera’s goal is to become “the new standard for the global token economy.” Part of this goal will be greatly actualized if central banks from around the world launch their CBDCs on the Hedera blockchain.

In the meantime, the project has continued to make strides towards realizing its goal. In February, Standard Bank Group, the largest African bank by assets, announced a partnership with Hedera Hashgraph.

The partnership will see the blockchain project help the bank address issues regarding the development of cross-border trade.

By using Hedera’s blockchain, Standard Bank aims to reduce the bottlenecks and settlement periods on their network. The blockchain-based project will also help the bank increase the transparency of transactions on its network.

Hedera currently has over 17 companies involved in the Hedera Governing Council (the body charged with overseeing the platform’s governance). Some of the major players include Boeing, Deutsche Telekom (OTC:DTEGY), Google, IBM, LG Electronics, and Tata Communications.

Continue reading on DailyCoin

Rumor: Hedera (HBAR) Working On The Digital Dollar With The Central Bank?
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
my goodness
my goodness Mar 31, 2021 9:40AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Hedera isn't a blockchain... It's a hash graph, it's in the name.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email