Bitcoin News and Finance
Fintechs Invited to Work on Georgia’s Central Bank Digital Currency Skip to main content

Fintechs Invited to Work on Georgia’s Central Bank Digital Currency

Fintechs Invited to Work on Georgia’s Central Bank Digital Currency

National Bank of Georgia (NBG) has issued a call for companies in the fintech sector, financial institutions and technology firms to support its efforts to create a digital currency. Georgia’s central bank wants to employ new technologies to raise the efficiency of the country’s payment system and promote financial inclusion.

Georgia’s Central Bank Mulling Digital GEL

NBG is now inviting companies from innovative industries as well as interested financial institutions to join a public-private partnership tasked to facilitate the adoption of a central bank digital currency (CBDC). The bank is considering launching the digital version of the national fiat, Georgian lari (GEL), as a publicly available coin that will have legal tender status.

The digital GEL can be used to settle payments or as a store of value, the National Bank of Georgia explained in an announcement published on its website. But what its management really hopes to achieve with the currency is to “unlock the tremendous value of innovative business models for the benefit of society” and “reach previously unbanked populations.” The bank further elaborates:

The rise of digital technologies underscores the necessity to update central bank money… to better serve the digital economy and increase public policy efficiency.

NBG also notes that it supports a regulatory sandbox approach to the development of the digital GEL. The bank plans to use its Regulatory Laboratory, a framework allowing financial sector entities under its supervision to test innovative services and products in real-time and controlled environments. The financial authority believes this will help it to develop its new regulations and update the legal framework to govern the CBDC.

In its project announcement, the National Bank of Georgia recognizes the potentially disruptive nature of the technology involved in CBDCs and the need for “sound risk management during the development process.” The bank also says that it shares the principles regarding the development of such currencies outlined in a report on the matter published by the Bank for International Settlements and prepared by a group of major central banks.

Key Features to Include Offline P2P Transactions

NBG will aim to develop the digital GEL with several important features. The project must be a low-cost endeavor, given the small size of Georgia’s financial market. The technology behind it has to be easy to use and offer convenience for retail consumers, small and medium enterprises.

Settlements should be near-instant and the system will be required to support “limited P2P offline transactions.” The platform must be easy to integrate by commercial financial institutions and fintech companies and should support the implementation of smart contracts and automatic payments.

Fintechs Invited to Work on Georgia’s Central Bank Digital Currency

The bank also insists that the technology must ensure personal data integrity and compliance with GDPR standards. At the same time it has to enable the collection of statistical information without de-anonymizing personal information.

“The solution should seek an optimal balance between ensuring privacy and AML/CFT risks,” NBG notes, emphasizing that it should also ensure transaction traceability in compliance with the FATF standards. The supervisory authority wants the system to be resistant to cyberattacks, allow to impose limits on transactions and provide the option for multi-signature approvals for certain operations. Another requirement for the Georgian CBDC is to support interest payments.

What do you think about Georgia’s plan to develop a CBDC allowing offline P2P transactions? Share your thoughts in the comments section below.

Labels:

Comments

Post a Comment

Popular posts from this blog

Custodial Lightning Network Service Attack Discovered by LN ‘Newbie’ — Hacker Strikes 6 LN Custodians

On September 18, a Redditor posted to the r/bitcoin forum and explained how he discovered a way to “attack [the] lightning Network’s custodial services.” The Reddit account dubbed “Reckless Satoshi” wanted to figure out if a “discrepancy between real routing fees and service’s transaction fee can be exploited for a profit.” The researcher disclosed that he wanted to see how large the damage could be and said “it is bad.” 6 Lightning Network Custodial Services Attacked, Researcher Discloses Findings to Offenders Prior to Public Disclosure A Redditor called Reckless Satoshi published a disclosure post on r/bitcoin this past Saturday and disclosed how he had found a vulnerability with routing fees and some of the Lightning Network’s custodial services. The research attack was done in good faith and after it was complete he disclosed the bugs to the offending services before publishing his findings. Reckless Satoshi used the Lightning Network (LN) attack on six different services incl...
Post a Comment
Read more

Axie Infinity Down 40% Since Last Week’s Price High, Protocol Revenue Outshines Competitors

Last week, the game token leveraged within the Axie Infinity gaming universe skyrocketed to all-time highs, while other crypto markets remained extremely lackluster. During the last seven days, Axie Infinity’s platform token has dropped significantly in value shedding more than 12%. Meanwhile, the game platform’s smooth love potion token has slid over 8% over the last 24 hours. Axie Infinity Down More Than 40% Since All-Time High Not too long ago, the axie infinity (AXS) token was a topical conversation because it reached an all-time high on July 15. At the time, AXS managed to capture $28.93 per unit and since then it has shed 12.8% during the last seven days. The axie infinity (AXS) token is used within the blockchain-based game that involves battles between token-based creatures called “Axies.” AXS is used for the game’s governance system as well as other actions within the game. At the time of writing axie infinity (AXS) is exchanging hands for $16.70 per coin. AXS/USD on Ju...
Post a Comment
Read more

Play-to-Earn Game From Polker (PKR) Exchange Listing – Endorsed by Akon

The Play-to-Earn NFT based Polker.Game ‘s native token $PKR has been officially listed on the popular centralized exchange BitMart. Polker.game has been in the spotlight recently as Akon, the American R&B superstar and record producer gave his official endorsement of polker stating that the “game is revolutionary” and that Polker is “hands down.. the best play to earn, NFT game in the space.”. With the BitMart listing and celebrity endorsement from Akon, Polker is perfectly positioned to become a major player in the Play-to-Earn league. Watch Akon’s Video Here What is Play-to-Earn? Although not a new concept, play-to-earn has become a trending term due to the popularity of the NFT game AXIE infinity. In the past, previous play-to-earn games have also achieved success – however, thanks to the huge amount of development in the blockchain space in recent years the gaming experience is now massively improved. Play-to-Earn games are essentially free to play and open to anyone and...
Post a Comment
Read more

China to Crack Down on Copyright Infringement Through NFTs

Authorities in China are going after creators of digital collectibles based on other people’s works of art, the use of which was not authorized. The government offensive is part of a campaign to combat online copyright infringement and piracy with the participation of several departments. Regulators in China Move to Strengthen Copyright Supervision of Online Platforms The National Copyright Administration of China (NCAC) has recently launched a campaign against copyright infringement and piracy on the internet, together with the Ministry of Industry and Information Technology, the Ministry of Public Security, and the State Internet Information Office of the People’s Republic. A major objective of the initiative is to improve copyright supervision of online businesses by investigating cases involving the sale and distribution of infringing products on short video, live broadcast and e-commerce platforms, and promptly dealing with infringing content, the agency announced in a press r...
Post a Comment
Read more
Blogarama - Blog Directory