As commerce moves onto digital platforms and financial services modernize, the demand for digital currencies has grown dramatically, with new digital currencies regularly entering the market. The different types of digital currency available have prompted rapid research into their use cases and potential applications in the both the private and public sectors.
R3 has been actively working with central and commercial banks, regulators and other parties to identify opportunities to increase efficiency and reduce risk using DLT / blockchain-powered digital currencies.
When issued through applications built on distributed ledger technology (DLT), digital currency presents opportunities to transform processes, such as interbank settlement for payments and securities, and boosting liquidity for corporates. This has proven to be particularly successful in regulated environments and research has expanded into central banks, where experiments are showcasing increasingly mainstream applications for Central Bank Digital Currency (CBDC). To find out more about CBDC, visit our CBDC Research Center, which includes the output from our working group of over 100 central banks and leading financial institutions.
Another digital currency group which is growing in popularity is stablecoins—defined by their value which is pegged to an external asset, such as gold. Regulated stablecoins provide apt solutions for long-standing issues surrounding inter-company settlement and liquidity management, and can also integrate into digital asset networks, which are being built in parallel. Stablecoins are predicted to play a key role in the future of digital currency and are being actively considered by central banks as a digital fiat currency.
R3 Sandbox for Digital Currencies is now available in Public Preview. Join dozens of leading global financial institutions and regulatory bodies in experimenting, developing and learning about digital currencies today by requesting a demo.
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