At a time when central bank digital currencies (CBDCs) have become one of the biggest debates on the global financial scene, Dr. Craig Wright’s latest Bitcoin Masterclasses delved into sovereign nodes and how CBDCs can go beyond digital currencies. Alec Burns was at Bitcoin Masterclassand he tells CoinGeek Backstage that programming CBDCs can give them additional utility beyond just payments.
“These Masterclasses are incredible. We learn a lot in such a short time. Craig is very insightful and he thinks about things that most people won’t think about in the next 10-15 years,” said nChain’s head of product analysts. CoinGeek behind the scenes journalist Becky Liggero.
In Bitcoin Masterclasses #7, Dr. Wright looked at sovereign nodes and how they can facilitate government adoption of blockchain technology. These nodes would be specific to their jurisdiction, giving authorities some control over transactions. The subject is current since nChain the partners with the Philippine government to integrate blockchain into the public sector.
For most people, a CBDC is nothing more than a digital representation of their sovereign currency. What if it could be so much more? That’s the challenge Dr. Wright posed to the participants, who grouped together to discuss how a CBDC can offer more than just a means of payment.
Burns’ group discussed how central banks can “add a certain degree of intelligence to CBDC transactions.” CBDCs can be programmed to require age verification when paying for certain items like alcohol. They can also be programmed to impose limits on transactions, for example by requiring KYC verification for purchases above a certain threshold, say $10,000. With the full payment history of any item recorded on the blockchain, traceability would be easy, giving customers more confidence in the items they purchase.
Burns is passionate about Web3 and hosts “Untangling Web3», a series of podcasts that dissect the new era of the Internet.
“Web3 is a big word. It means a lot of things to a lot of people. The idea is to make Web3 tangible and practical…by defining Web3 and the real benefits it will bring to ordinary people,” he said.
To learn more about central bank digital currencies and some of the design decisions that need to be considered when creating and launching it, read nChain’s CBDC Playbook.
Watch: Integrate Government Services with Sovereign Nodes
New to blockchain? Discover CoinGeek Blockchain for beginners section, the ultimate resource guide to learning more about blockchain technology.
