Central Bank Digital Currencies are a hot topic in every government treasury, and Hedera Hashgraph seems intent on claiming a slice of the pie through a joint effort with EMTECH’s CBDC core solution.
Hedera Consensus Services (HCS) will integrate the CBDC core solution to deliver low-cost and higher-energy efficiency infrastructure for CBDCs.
The savings are driven by the HCS mechanism, which is effectively a means of providing a decentralised blanket trust layer over the top of centralised technologies. This makes it possible for existing centralised platforms (like auction sites, stock exchanges, and MMO games) to achieve the trust of being decentralised while still having the privacy and performance of being centralised.
Indeed the potential benefits afforded by this trust layer of gossip consensus on the Hedera network make a versatile use case for smaller government’s new to working with blockchain and digital assets.
Hedera also stands to benefit from EMTECH’s regulatory sandbox.
Hedera, fueled by $HBAR – the world's greenest cryptocurrency pic.twitter.com/sfcA6rn4Z4
— Hedera (@hedera) September 16, 2021
The announcement bodes well, and comes following a succession of positive news for the project with an independent study recently identifying Hedera as the greenest proof of stake blockchain.
CEOs explain CBDCs on Hedera
Mance Harmon – CEO of Hedera Hashgraph – explained what the integration meant for Hedera.
“We’re thrilled to collaborate with EMTECH to give central banks around the globe the opportunity to explore realistic ways to bring CBDCs to fruition, and this collaboration will enable a ground-breaking use of the Hedera network and services,” he said.
“This partnership is about delivering high performance, and high trust.
“We’re excited to see how EMTECH will meet and exceed the criteria and demands for scalable, secure CBDC solutions.”
The decision to integrate EMTECH with the Hedera Consensus Service (HCS) blockchain can be linked to more than just scalability, decentralisation, and sustainability.
EMTECH’s Private CBDC Platform will look to leverage the fast, fair, and secure hashgraph consensus algorithm which provides an Asynchronous Byzantine Fault Tolerant (ABFT) ordering service within and between each network.
https://twitter.com/HederaCashgraph/status/1407231154780921858?s=20
ABFT is one of the most advanced blockchain security mechanisms on the market, and will give serious reassurance to governments worldwide seeking to find low impact and reliable blockchains to launch national CBDCs.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.