Estonia Begins CBDC Research
- Eesti Pank will look into KSI Blockchain, which is already a part of its e-government system.
- The project will last for two years and will be conducted in several phases, the first focusing on building a scalable, practical and secure platform.
Estonian National Bank main building located in the city center in Tallinn, Estonia, photographed on May 20, 2020. M.Pakats/Shutterstock
The central bank of Estonia, Eesti Pank, is launching a new research project to investigate the viability of Central Bank Digital Currency (CBDC), the bank said in a press release on Friday.
According to the announcement, technology companies SW7 Group and Guardtime will be assisting the Estonian bank to determine if the Keyless Signature Infrastructure (KSI) Blockchain able to support a CBDC. The blockchain, developed by Guardtime, already plays a “core” part of the country’s e-government infrastructure.
The head of Eesti Pank’s Payment Systems Department, Rainer Old, said in a statement:
“Estonia’s unique wealth of experience provides a good impetus to launch a project with technology companies SW7 and Guardtime to explore technological opportunities. The latter is Estonia’s long-term cooperation partner in the field of the blockchain and a complete top in the world in its field.”
In addition to gauging KSI Blockchain’s potential, the project will also look into new payment solutions, which could be made possible with the country’s e-government solutions and electronic IDs. The bank further stated that the project will last for two years, and will be conducted in several phases, the first of which will focus on building a scalable, practical and secure platform. Old said:
“As a small central bank, Eesti Pank carefully chooses which development projects of euro area central banks we can make a meaningful contribution to. Over the years, Estonia has developed unique know-how on how to maintain a secure, private and efficient e-government.”
According to the bank, the project was started in response to a decision taken by the Governing Council of the European Central Bank last month, which called for a “coordinated research into the benefits and drawbacks of issuing central bank digital currency”.
- The head of China’s central bank digital currency institute said the e-CNY has undergone a major upgrade, and should be made available as an option in all retail scenarios.
- The PBOC official noted that platforms can integrate the CBDC in the short term using QR codes, and focus on upgrading their payment tools in the long run.
Office building of the People’s Bank of China. Flickr
- The current governor of Florida, Ron DeSantis, announced he is joining the race for the 47th president of the U.S. during a Twitter Spaces event on Wednesday.
- During his speech DeSantis declared his support for Bitcoin and the wider crypto space, noting that if Joe Biden is re-elected “they’ll probably end up killing it”.
- Planned for 1 April, the CBDC trial will involve real consumers and real transactions, though they will be limited to a certain number of customers and transfers.
- The pilot, however, will not be opened to the general public in its first phase, and will only be opened to customers chosen by the 13 participating local banks.