Deloitte believes Bitcoin and cryptocurrencies may help offer a payment system that is quick, safe, and effective, as well as promote efficient cross-border transactions. However, there are obstacles to overcome first. The most recent report, titled “State-sponsored cryptocurrency,” by Deloitte, presented a new viewpoint on a central bank’s digital currency by redesigning the existing fiat system and incorporating Bitcoin’s innovation.
According to Deloitte, integrating the greatest aspects of cryptocurrency technology with the features of an established fiat currency under the sponsorship of a central bank will result in a new method of processing payments. It has the potential to transform the present system by lowering costs, decreasing mistakes, and increasing transmission speed while maintaining privacy and anonymity.
According to the report, central banks, banks, end-users, and exchanges would be key actors in a future state-sponsored CBDC.
When dealing between currencies, crypto trading platforms will assist consumers in converting their cryptocurrency to paper cash and will charge an exchange fee for the service. Central banks will be entrusted with extending or shrinking the distributed ledger’s money supply, as well as authenticating, managing, and maintaining a dispersed and trustworthy set of processors. Banks, on the other hand, will serve as the distributed ledger’s custodians and processors. These entities will assist in the construction of the user’s private/public key pair, but they will not have access to the user’s private keys.