Are You Ready for the Future of Money?

Have You Heard About CBDC?

Imagine a world without Banks where you could send money to a friend or pay for your groceries without needing a bank account or traditional financial services. This isn’t the distant future—it’s already happening in countries like Nigeria, the Bahamas, and Jamaica through Central Bank Digital Currencies (CBDCs).

Unlike cryptocurrency, Central Bank Digital Currencies (CBDCs) are just digital versions of your regular money, backed by central banks. Unlike volatile cryptocurrencies, a CBDC maintains the same value as traditional currency, offering a secure and stable way to make everyday digital transactions, but with faster and more efficient processing

WHERE ARE WE TODAY?

A few countries have launched CBDCs to make payments faster, cheaper, and more accessible. In Nigeria, for example, the eNaira allows users to make payments directly using a digital wallet. Similarly, the Sand Dollar in the Bahamas and Jam-Dex in Jamaica are helping unbanked populations access digital payments, especially in remote areas. These digital currencies are still evolving, but they're already transforming the way money moves.

HOW SOON SHOULD WE EXPECT IT TO CATCH ON?

The adoption of Central Bank Digital Currencies (CBDCs) is still in its early stages, and widespread use may take some time. As at September 20 2024, the Bank of Canada paused its plans for a digital Canadian dollar after seven years of extensive research. This decision reflects a cautious approach, as central banks worldwide are still evaluating the best ways to implement and regulate CBDCs.

Also, the few countries that have launched CBDCs are still a mile off the dream future state since banks and financial institutions are very much still a part of the process. Given these realities, it may be several years before CBDCs become a common part of daily financial transactions. However, as technology advances and more countries explore digital currencies, the pace of adoption could accelerate.

HOW DOES IT AFFECT YOU?

In the immediate, not by much. The evolution of finance is nothing to be scared of but it’s better to be prepared for whatever comes. CBDCs are simply a new way to access and manage your money, but you will still need to earn that money first. This brings us back to the familiar options we’ve always had - labor (work), capital (invest), and entrepreneurship (own a business).

Contact us today, and let’s get started on your journey to building a diversified income stream that will be relevant into the far future!

sources: https://www.atlanticcouncil.org/cbdctracker/, https://www.euronews.com/next/2022/03/09/cbdcs-these-are-the-countries-are-using-launching-or-piloting-their-own-digital-currencies, Bank of Canada Abandons Digital Currency Plans After Years of Research | the deep dive, Photo credit: https://www.ledgerinsights.com/imf-cbdc-decisions/