Pros and cons. Pro is its something huge vs what feels more and more like nothing going on.
Important background material…
That will be the ultimate bullish usecase!! I just pray Polkadot will be the technology layer for any CBDC.
Gavin spoke about polkadot being designed for “private blockchains” on a public chain so seems to be aligned with its use. I’d be surprised if someone isn’t already on it here. If not someone competent should step up.
Assuming Polkadot could even take part in the experimentation (see Survey on Eurosystem plans for trials and experiments on new technologies for wholesale central bank money settlement), I don’t see the upside of participating except wasting time and resources.
I used to work for a startup which joined a CBDC experiment run by our country’s central bank. It cost us a lot of uncompensated time and resources just to have our name mentioned on 1 line of their public report.
There is a job title “standards wrangler” who goes to meetings, and attempt to make sure whatever standard emerges fits their employer’s interests.
This is being handled as a boondoggle/contract, but it might be possible to derail it into being a standards process. At which point it becomes at least possible to participate. This could also fit the interests of privacy activists, well maybe.
if it stays a boondoggle/contract then the real fun will be breaking it once deployed.
Someone needs to just ensure their team- whoever that is faithfully assesses polkadot as an option. If it is most suitable vs an EVM layer 2 (which they will look at in addition to literal private BCs which are garbage)then they will use it.
Polkadot doesn’t need to fund the work… need leadership and those with vested interest to promote it enough to be considered …
Don’t think that it’s realistic to expect CBDCs, whether wholesale or retail, to utilize any decentralized public network (for issuance and distribution) aside from exploratory pilots, since this reliance (particularly on the native token economy) directly impedes their sovereignty.
On the consumer side, which primarily impacts retail CBDCs, the main concern lies in the challenge of enabling a digital bearer instrument with the same capabilities as physical cash (a problem yet to be properly solved). It’s unlikely that retail CBDCs could replace cash in the mid term, given how essential cash-like properties are in the real economy.
So, Substrate technology could have an edge but not in a public network that’s not controlled by national or international power.
Ya-sorry - that’s a short sighted perspective… time will tell. You need a proven security base protocol which private can’t handle… hence polkadot… you have full sovereign control for cbdc… it’s like saying it’s not the government internet so they’ll never use it… guaranteed they will eventually use public BCs because of scale and security…
May not be polkadot tho if no one has the vision