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The next frontier for blockchain is central bank digital currency. Roxe wants BTC hashrate to be the anchor for future CBDCs.
Roxe, a global payment network, has hired an experienced economist from the International Monetary Fund (IMF) to help run its central bank digital currency initiative supported by Bitcoin’s (BTC) hashrate.
Andreas Jobst, whose career spans the IMF, World Bank and Bermuda Monetary Authority, has been appointed as Roxe’s chief currency economist, the company announced Wednesday. Jobst will be tasked with helping to scale Roxe’s CBDC Plus Program and payment network, which allows countries to issue new primary or secondary fiat currencies backed by the computational power of Bitcoin.
Jobst’s most recent position at the IMF was in its European section, where he worked for two and a half years. Between 2014 and 2016, he worked as a senior economist for the same department.
The CBDC programme is primarily aimed at developing nations experiencing excessive inflation, fiscal imbalances, and currency instability. Countries that have dollarized their economies have effectively handed over monetary policy to the Federal Reserve of the United States, introducing additional risks.
Global central banks are aggressively investigating CBDCs, with some nations, such as China, far ahead of the curve. However, the majority of CBDC projects are focused on digitising their fiat currencies in order to simplify access to legal currency and increase governance and monitoring of transactions. Roxe, on the other hand, is working on a CBDC that will be backed by a standardised unit of Bitcoin’s hashrate. This technique could allow nations to incorporate Bitcoin’s sound money concepts into their monetary policy because reserves would be generated based on hashrate rather than arbitrary judgments.
Currently, there are five nations that have successfully deployed CBDCs, and all of them are located in the Caribbean region. As recently reported, Nigeria’s pilot CBDC project is also scheduled for implementation in the coming weeks.