Minsk Plans to Launch Blockchain-powered CBDC to Address Sanctions
The National Bank of Belarus (NBB) has announced its intention to develop a blockchain-powered Central Bank Digital Currency (CBDC). The NBB aims to utilize smart contract technology for settlements using the digital Belarusian ruble. The CBDC will be built on the Hyperledger Fabric blockchain protocol and provide a high level of safety for the public. This move comes as Belarusian firms face Western-led sanctions that restrict their access to dollar-powered trade. The digital ruble is expected to expand integration possibilities with partner countries and enable CBDC-powered trade within the Commonwealth of Independent States (CIS).
CBDC Launch Benefits Businesses and Banks
The NBB believes that businesses, commercial banks, and new market participants will benefit from the launch of the CBDC. A digital fiat would lower entry barriers for new participants, and smart contracts would play a crucial role in this process. China has already implemented CBDC smart contracts for providing financing and subsidies to small businesses, while Russia plans to trial CBDC-powered government subsidies in 2024.
Hot Take: Belarus Sanctions ‘Antidote?’ Minsk Confirms ‘Blockchain-powered CBDC’ Launch
Minsk’s decision to launch a blockchain-powered CBDC could potentially serve as an antidote to the economic challenges posed by Western sanctions. By adopting this innovative technology, Belarus aims to overcome restrictions on dollar-powered trade and enhance its integration with partner countries. Furthermore, the introduction of a digital fiat currency can bring numerous advantages for businesses, commercial banks, and new market participants. With smart contracts playing a pivotal role in facilitating transactions, Belarus is positioning itself at the forefront of blockchain progress in the financial sector.
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