Central bank digital currencies and game to drive mass scandal … – The National

Mass consumer adoption of blockchain is likely to be driven by the use of central bank currencies (CBDCs) and digital assets in gambling and payments on social media, said a new report from Citi Global Insights and Solutions.

Up to $5 trillion could move to newer forms of digital money like CBDCs and blockchains by 2030, of which nearly half could be linked to distributed blockchain technology or blockchain, according to the report.

“We are approaching an inflection point where the promise of blockchain power will be realized and measured in billions of users and trillions of dollars in value,” said Kathleen Boyle, managing editor of Citi GPS.

“It will be a successful adoption when the blockchain has more than thousands of users who do not know how to use the technology. The blockchain has boosted the number of users in the daily activity – money, sports, social and many boxing.

CBDCs are a digital form of money issued by a country’s central bank.

A blockchain is a digital expansion of a chain of interconnected businesses using cryptography – a mechanism for secure communications – that creates an open ledger to record transactions in a fast and efficient way. This is the database technology behind cryptocurrencies such as Bitcoin and can work as a real-time archive of financial history.

The UAE unveiled its Emirates Blockchain Strategy 2021 in 2018. Nearly 50 percent of the government’s transactions are slated to change in three years.

By usurping the barrier, the UAE is expected to save 77 million working hours annually, Dh11 billion ($2.99 ​​billion) in transaction costs and regular document processing, and 398 million documents printed a year, according to the government.

In November, Abu Dhabi launched the Middle East, Africa and Asia Crypto and Blockchain Association, which was launched by Abu Dhabi Global Market, the emirate’s financial center, to accelerate the development of blockchain and cryptocurrency in the region.

It aims to bring industry players together to negotiate strategies and address the biggest challenges facing the industry, while also integrating digital assets into key economic sectors.

Last week, the UAE Central Bank also said it has started implementing its own digital currency strategy, the Digital Dirham, as it prepares the country’s infrastructure for the financial future.

It signed an agreement with Abu Dhabi’s G42 Cloud and digital financial services provider R3 to be the infrastructure and technology providers, respectively, to implement its CBDC, the director said.

Recently, several central banks have announced plans to introduce CBDCs by the end of this decade, giving nearly 2 billion people the opportunity to experiment with digital currency, according to a Citi report.

“Get to the CBDC versions of the euro, the British pound and the Indian rupee, in addition to the Chinese renminbi, which has already been tested for two years,” the study said.

“Together these four jurisdictions account for more than 50 percent of the global population and 35 percent of global banking deposits. Hence, we think that CBDCs have at least 2 billion users and $5 trillion more in circulation.

Art and collectibles are also a barrier to movement because these industries resonate with one of the key characteristics of the closure – trust and provenance – as well as the ability of wider owners to invest through fractionisation, the research said.

Similar to the arts, entertainment industries such as music will also use technology in non-fungible standards (NFTs).

“Tokenization of financial and real-world assets can be a killer use case driven by blockchain disruption, especially private business transactions,” the study said.

Tokenization means the creation of tokens, which are pieces of code in the blockchain, to represent information about the underlying assets and liabilities, including their attributes or properties, status, transaction history, and ownership.

Real-world assets mean a lot, foreshadowing assets such as real estate, art and collectibles, agriculture, climate assets, and intangible assets such as coal credits and intellectual property, according to the report.

Citi’s GPS reporting projects are growing by a factor of more than 80 times in private markets and will reach about $4 trillion in value by 2030.

“In addition to the private ticket market, we expect $1 trillion in repo, financial guarantees and collateral markets to be signed by 2030,” the report said.

“We anticipate $4 trillion to $5 trillion of tokenized digital securities and $1 trillion of DLT-based financial transactions by 2030.”

Regulatory considerations are necessary to allow block adoption and scalability without stifling innovation, Citi said.

Although the mass adoption of blockchain was still six to eight years away — due to the need for collaboration between stakeholders, platform standards, interoperability and compatibility with existing systems and software — the momentum has completely changed as governments, large organizations and corporations move away. The benefits of tokenization in proof-of-concept and proof-of-concept, he added.

Updated: March 31, 2023, 3:05 AM