It may well be commonplace for most people in many parts of the world to see transactions being made by contactless devices everywhere, from supermarkets to restaurants however, there is still a large number of people who perhaps look on at such practice yet still settle their everyday transactions with cash.
For those who still see cash as king, there is a new evolution which began approximately two years ago but is now taking a further set of developments which further signal the potential end of cash as a regular, everyday medium for buying everyday items.
There has been a lot of coverage in mainstream news and within the financial services world over recent years relating to the development of CDBCs, an acronym for Central Bank Digital Currencies.
Ever since some of the major central banks in key economic regions of the world began to work hard toward developing digital versions of their own sovereign currency, there has been a lot of suspense and speculation as to whether the European Central Bank, the Bank of England and the US Federal Reserve Bank will eventually move to replace physical paper cash with digitally issued versions of the Euro, Pound and Dollar.
China’s central bank issued a digital Yuan some time ago, and the rest of the world is following suit.
CDBCs are not new at all in their concept however, as Finland’s central bank trialled this concept with the Avant system in 1993, but only since China’s lead has the main financial ecosystem of other nations begun to develop CDBCs and work toward issuing them.
So, in essence, they are not new, but they are being developed rapidly.
Whilst the public continues to begin to get used to the idea that one day there may be no physical cash and that their Euros, Pounds, or Dollars may be issued electronically and payments made only via mobile devices or bank transfers, there is now a new development which takes this potential cashless society even further.
This new development arrives this week in the form of an international CDBC, which is, in effect, a central bank digital currency which has no borders and is not strictly limited to legal tender status in the region in which its issuer resides.
The new international CDBC has been developed by the Digital Currency Monetary Authority (DCMA), which is a non-government organisation which operates internationally and advocates the use of digital money toward global governments.
That may appear scientific and, in some respects, akin to the subject of a dystopian science fiction novel, but there is no doubt that the digitisation of regular, sovereign currencies is not only on its way but will be further developed once the initial regional and national ones are launched.
What does this mean for everyday use?
It means that many people who currently use cash may have to look toward updating their method of interacting with their personal finances, which means searching for a superior quality, user-friendly application from which to manage payments.
Monevium’s digital smartphone app is user-friendly and allows its users to keep full track of their funds, recent transactions, and account activity, as well as gain easy access to virtual or physical cards for contactless payments.
Monevium’s functionality provides quick and low-cost access to an increasingly borderless payment area, with IBAN accounts which allow the sending of Euros across the entire Eurozone, with fast settlement and no foreign exchange costs because IBAN accounts are denominated in Euro as a native currency.
This digitises the way your existing account operates and therefore allows for a smooth and uninterrupted everyday interaction with transactions whether CDBCs are invoked or not.
Yes, the age of digital payments is expanding, and becoming less region-specific however, going about everyday life with the Monevium app and its clear and easy functionality will make life simple, secure, and practical without having to navigate any such complex advancements at the government or central bank level.
Monevium is the Trading Name of Advanced Wallet Solutions Limited, a company registered in the UK under company number 10251711 and is regulated by the UK’s Financial Conduct Authority under Firm Reference Number 766038.