World Economic Forum report on CBDCs interoperability

The World Economic Forum (WEF) published a report on the findings & interoperability of three CBDCs and found that all three are based on different concepts and principles. 

Because of the increasing demand and need for advancement in the payment system, many countries’ central banks are working on the Central Bank Digital Currency (CBDCs). However, Thailand, China and Sweden launched their CBDCs. On these things, WEF published their report. 

According to WEF, The CBDCs of China is dedicated to the international payment system. The main purpose of the Chinese CBDCs is fully dedicated to cross-border remittances and B2B use cases. Access to the Chinese CBDCs is possible through a special wallet. China is developing mCBDCs payment channels. However, at this stage, use cases of the Chinese CBDCs are fully dedicated to retail use. 

The CBDCs issued by the Swedish authorities are also much similar to the case of Chinese CBDCs, which are made for retail payments. However, there are no more announcements and information provided by the government authorities about the international payment system. But still, they made CBDCs dedicated to the real-time gross settlement (RTGS). So Swedish CBDCs want to make their payment infrastructure fully advanced by integrating the traditional framework with it. 

On the CBDCs of Thailand, WEF found that it is different from the China and Swedish CBDCs. Because it is based on the Ethereum blockchain network. 

WEF asserted that, while these CBDCs can be accessed globally but to allow the international payment system, we have to create communication protocols and standards to enable domestic and foreign payments: 

“If the central bank decides to grant cross-border access to the CBDC and it wants to support interoperability with foreign CBDCs, then it needs to create communication protocols and standards to enable domestic and foreign CBDCs to exchange information seamlessly.”

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