The concepts of money and value transfer have been evolving since primitive societies adopted shells and stones for monetary exchange, but the concept of digital money has been sought after for as long as there’s been an internet and peer-to-peer networking capabilities to drive its development.
Digital money is drawing stronger interest as the future of an increasingly cashless society. 86% of the world’s central banks are exploring digital currencies. The adoption of a CBDC could mean widespread use of a regulated digital currency. Adoption will significantly increase the speed of various processes carried out by central banks and the US Department of Treasury.
Allowing money to be deposited directly into an employees' digital wallet will allow for near instantaneous transfer of tax refunds, stimulus checks, and government aid. Utilizing a digital currency would also eliminate the cost of minting money. Currently, it costs 2.06 cents to make a penny and 7.53 cents to make a nickel, an economically inefficient process.
A digital wallet, also known as "e-Wallet", refers to an electronic device or online service that allows an employee to make electronic transactions, including central bank digital currencies (CBDCs), cryptocurrencies (Bitcoins) and other digital fungible tokens.
Funds can be deposited in the digital wallet prior to any transactions or, in other cases, an employee's bank account or payroll can be linked to the digital wallet. Employees might also have their driver's license, health card, employer-sponsored ID card(s) and other employer documents stored within the wallet. These credentials can be used to authenticate the employee's credentials. For example, a digital wallet could verify the medical, dental, insurance and financial benefits associated with each employee.
Digital central bank currencies are forms of money issued by a country’s central bank that exist entirely electronically, without any connection to physical bank notes or coins.
They’re different from decentralized cryptocurrencies like bitcoin, which aren’t controlled by one central player, though some of the underlying technology is the same.
Treasury Secretary Janet Yellen expressed that same view: “Too many Americans don’t have access to easy payments systems and banking accounts, and I think this is something that a digital dollar, a central bank digital currency, could help with,” she said.
Yellen also suggested that a digital central currency could help make payments faster, safer and cheaper (that’s because proponents of the technology say it will help simplify complicated, often days-long settlement processes).
Powell said Tuesday that since the U.S. dollar serves as the world’s reserve currency, it’s more important to get the project right than it is for the United States central bank to be first to unveil a digital version of its currency.
"Permissioned" blockchain solutions address many of the previous trust, security, transparency and productivity issues and improve upon legacy employee payroll processes. Credentials and digital employee wallet ownership, including central bank digital currencies (CBDCs) is cryptographically authenticated.
Our solutions are based on our Intellectual Property (IP) and some are US Patented. Moreover each solution is customized for the specific requirements of the institution(s) involved.
As institutional interest in cryptocurrencies grows following bitcoin’s blistering rally at the beginning of the year, Federal Reserve Chair Jerome Powell said the central bank is looking closely at the prospect of issuing a “digital dollar.”