Here’s how an Ethereum-based CBDC can help central banks

Central Bank Digital Currencies [CBDC] have gained prominence at the 2020 World Economic Forum. ConsenSys released a whitepaper that outlined a practical proposal for central bank digital currencies on the Ethereum blockchain.

The whitepaper stated,

“We propose that central banks issue CBDC on a large-scale, private, permissioned, Ethereum-based network in which central bank appointed intermediaries act as nodes.”

Incorporating digital innovation while maintaining control over money has been the motive of central banks across different countries. According to the whitepaper, using a permissioned blockchain, Ethereum-based, would help central banks retain control over the “onboarding and distribution” of the CBDC to the intermediaries. The whitepaper also highlighted,