The Central Bank of Columbia, after a study, has released a report with several suggestions for CBDC transactions and holdings to unlock its potential.
The Central Bank of Columbia has released a CBDC report recently. The South American nation does not yet have an official central bank digital currency (CBDC). But the report has suggested several reforms for CBDC transactions that could benefit the entire crypto ecosystem.
The central bank has also mentioned CBDCs won’t pose a major threat macroeconomically. Meanwhile, it suggested specific changes that could minimize any possible risks that emerged from CBDCs.
Firstly, it mentioned how holding and spending limits for CBDC transactions could be beneficial. According to the bank, such limits could protect users’ holdings from cyberattacks.
Secondly, it described how limits on CBDC transactions could also help regulators. Authorities could balance privacy and transparency with different sets of limits, said the bank.
It shared an example of how digital wallets could have lesser limits but higher privacy. On the other hand, high-volume accounts would have to share more data to increase their limits.
“No doubt, the protection of user transactions information will be key to ensuring a high level of adoption, which could be achieved by imposing reasonable limits to minimize the collection of users’ data,” said the bank.
The bank clarified how certain aspects of the viability of CBDCs were necessary before it released one. Nevertheless, the CBDC report released by the central bank would also go a long way in helping the crypto industry worldwide.