As governments and international payment institutions across the globe announce plans to research, develop or pilot digital currencies, know as Central Bank Digital Currencies (CBDCs) payment industry leaders must evaluate their potential implications. In the world of iGambling, which has thrived on the rise of cryptocurrencies, the potential for safe and secure state-backed transactions battles against concerns over privacy and other challenges represented by CBDCs, writes Tim Heath in his latest opinion.

India and Pakistan are the latest two major world powers to announce plans to pilot state-issued digital currencies, following successful launches in the Bahamas, Nigeria and 7 other countries. A Central Bank Digital Currency (CBDC) is an electronic form of a country’s fiat-currency.

CBDCs have the potential to reduce payment costs and settlement times, especially for cross-border transactions. But how might their implementation affect iGambling? You’d be forgiven for thinking that iGambling is not an obvious use case for CBDCs, but you’d also be wrong.

Firstly, CBDCs could increase participation rates by incentivising the involvement of players who might otherwise be reluctant to dabble in the world of cryptocurrencies, whose reputation has taken some significant blows in recent weeks.

Read the full article on Benzinga.

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