Updated: Mar 5, 2020
By Wirba Brice Divine Ransinyuy. firstname.lastname@example.org
The use of digital currencies in various countries is taking much ground as the world is seeking for a sure and secure security that can go through economic crisis no matter its magnitude. This has generated the use of a digital country in one or more countries of the existing continents. Even though some continents have more prevalence than others with some countries still embracing the venue of digital currencies in their continent. This is notably the case with the African continent with countries and cities like Mali followed by Dakar already being on the head list of countries having their own digital currency known as eCFA. In order for a digital currency to be coherent in all aspects, it’s necessary to have a CBDC, better known as the Central Bank of Digital currencies
Taking into consideration the concepts brought out by the Central Bank of Digital currencies, the eCFA already existing in francophone countries in Africa is completely and fully dependent on the central banking system which can only be given out by a legal and authorized financial institution, eventhough the eFCA was issued separately under the supervision of the Central Bank of Digital currencies with the collaboration of an Ireland-based startup known as the eCurrency Mint Limited that assist many central banks of digital currency to create and developed their own national digital fiat currencies . As a result of this, the eFCA is available in all mobile money and also e-money wallets as it will secure the liquidity transmission and provide transparency. With this efficacity and following the concept of the Central Bank of Digital currencies, the eFCA will be expanded to other West African countries like Ivory Coast, Burkina Faso, Togo, Niger, Benin and Guinea-Bissau.
Analysing the use of the Central Bank of digital currencies is found in Japan. The Deputy Governor Masayoshi Amamiya slated on the use of the Central Bank of digital currencies by saying that “Central Banks of Digital currencies stimulate worldwide discussion on what levels and extent central banks should give their payment and settlement infrastructures in the nation”. Moving forward he say a positiveness and optimism in the use of Central Banks of Digital Currencies as they will enable and give the opportunity to individuals and companies to directly have an access to their accounts in the central banks. This will give more credibility and happiness to individuals and companies, although retailing companies will see their use diminish in form as time goes by.
The idea of the use of a Central Bank of digital currencies is mostly and highly welcomed in many countries. In order to have the best use of the Central bank of digital currency is good to seek advices from a digital currency firm as the CBDC brings a large impact on two-tiered currency systems and also on private banks most especially.