INX, SIPCA Partner to Help CBDC Roll Out
Posted by Colin Lambert. Last updated: June 29, 2022
There may be those in the crypto industry wary of central bank digital currencies (CBDC) and in particular central bankers’ apparent preference for them over cryptocurrencies or stablecoins, but two companies are throwing their lot in with CBDC, seeking to develop a blockchain solution for CDBC and the supporting ecosystem.
Broker-dealer INX Digital Company has partnered with technology provider SICPA to develop a “new, holistic solution for all stakeholders to utilise digital currencies in a secure, scalable environment”.
The two companies say they plan to expand interoperability between different stakeholders across borders through the joint venture, arguing that as a “longstanding trusted partner and advisor to central banks around the world, SICPA has robust expertise in identification and security solutions, strong digital capabilities, and extensive knowledge of the use of physical cash that allow for the development of new innovative forgery-proof security features to protect monetary sovereignty”.
The planned joint venture aims to allow governments to expand their access to payments infrastructure, facilitate cross-border payments, maintain sovereign currency control through rigorous regulation, and introduce privacy and safety measures. The announcement does not identify any central banks the firms are going to be working with – concurrently, the Bank for International Settlements’ Innovation Hub has multiple CBDC projects underway.
“We believe that the unique form of CBDC we are working toward is an ecosystem and not only a tech solution,” says INX’s deputy CEO and COO, Itai Avneri. “Along with SICPA, we harness the power of blockchain (trust, efficiency, cross-border, programmability, compliance, traceability and more) to cultivate a holistic solution that addresses the key requirements for CBDC, which include privacy-preserving, security, financial inclusion, resilience, and more.”
Philippe Amon, CEO and chairman of SICPA, adds, “In line with our purpose of enabling trust, our ambition is to develop with our partners a CBDC solution that is efficient, inclusive and safe, enabling trustworthy and privacy-preserving transactions for all, complementary to the use of cash.”