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Amid much fanfare and anticipation CloudTech Group has finally come out with a release date for their highly touted CloudTechX Wallet.It is set to officially launch sometime in mid-September; the date will be confirmed as soon as all final tests are successfully run.

This entity was brought to life due to a lack of a real solution in the present Australian market for a secure storage of cryptocurrency funds which also enables swift withdrawals of holdings into AUD. At launch, CloudTechX wallet will offer multi-asset support for funds in the form of Bitcoin, Ethereum, Tether and Australian dollars- with more crypto currencies being onboarded later on.

Setting up a wallet is as streamlined as its user interface; download the app from the operating system of choice; available on both theApple App store and Google play store, create an account on it and add a government issued ID for KYC (know your customer) verification. Once verified, transfer over any crypto holdings, link a bank account and withdraw any of the holdings into AUD. Users engaging in the withdrawal service will receive realtime exchange rates of the specific crypto along with a flat 0.1% transaction fee. Another security feature is the enabling of a third-party coin tracking service which traces the transfer of funds from one account to the other and helps reduce the prevalence of illicit sources of funds.

CloudTechX wallet are officially licensed custodians of funds and the fact that the wallet exists off-chain ensures complete security for user data and especially user funds. Additionally,CloudTechX is a registered Digital Currency Exchange (DCE) with AUSTRAC which allows for the primary function of exchanging crypto to fiat and fiat to crypto.

A preview of the interface and supported cryptocurrencies.

CBDCs: A new dawn rising?

Update Time: 10 October 2023

In around 3 months time, Bitcoin will be celebrating its 15th birthday. Whether you welcomed this moment with much fanfare or not will likely depend on your interest in crypto. If you’re an enthusiast, it might be somewhat akin to Independence Day; if you’re not, it might feel more akin to the 4th of May, when disciples of Stars Wars spread goodwill to the converted and the perplexed alike.

Regardless of where you happen to fall on the spectrum of crypto-enthusiasm, though, it’s still a moment worthy of recognition and reflection. When Bitcoin — and the blockchain technology it was built upon — first arrived, it was, like many instances of disruptive technology before it, expected to force a seismic shift in the way we did things. In the case of Bitcoin, many felt that traditional models and methods of finance would expire overnight, in their place a new dawn of decentralisation. Fourteen years later, we’re still waiting for this dawn to arrive. But while blockchain hasn’t followed the same trajectory as the iPhone or, say, Uber, its potential hasn’t been dismissed by those in charge.

This is evident in the growing interest around Central Bank Digital Currencies, or CBDCs. As of 2023, more than 130 countries are currently exploring CBDCs, with 11 countries having fully launched their own iterations. But what exactly are CBDCs? And what are the potential benefits/risks involved? Here is a brief but helpful introduction to CBDCs and what they could mean for the future of finance.

What is a CBDC?

Simply put, a CBDC is the digital form of a country’s fiat currency. It is issued and regulated by a country’s central bank, and its value is always pegged to the fiat currency of that country. Right now, you might be thinking ‘wait, isn’t my money already digital?’, which is understandable; many of the features that a CBDC offers are similar to those already offered by traditional banks. The key difference, much like cryptocurrency, is that CBDCs are purely digital. To use them — again, much like crypto — you will need a digital wallet; from the wallet you’ll be able to send and receive payments, check your account balance, all the things you are currently able to do with online and mobile banking.

Different types of CBDCs.

Wholesale CBDCs.

Wholesale CBDCs work in a similar way to holding reserves in a central bank. In this case, institutions will be granted an account with which they can deposit or use to settle interbank transfers. With wholesale CBDCs, central banks will still be able set interest rates and influence lending through monetary policy. Wholesale CBDCs are not used by the general public or businesses.

Retail CBDCs.

Retail CBDCs, on the other hand, are used by the general public and businesses. There are two types of retail CBDCs: token-based retail CBDCs, which use public/private keys to validate and execute transactions (like crypto), and account-based CBDCs, which require digital identification for access.

Potential Benefits/Risks.

On paper, CBDCs present many of the same potential benefits and risks as crypto. On the one hand, features like the removal of third-party risk, significantly reduced transaction costs, less complex distribution systems, as well as greater financial inclusivity, all make CBDCs a prospect worth considering, and certainly these are points of difference that governments will focus on promoting if they are to convince their citizens that implementing a CBDC is the right way to move forward.

On the other hand, adverse changes to a country’s financial structure and system, unethical monetary policy influence, along with issues surrounding privacy, protection, and cybersecurity, are all factors that must be considered, not just by the government but by the public.

In presenting their case for a CBDC, a government must address both the pros and the cons thoroughly, not just for the sake of transparency toward the public but for their own better understanding of what it is they are trying to implement.

A final word.

At face value, there is plenty to like about a CBDC. The efficiency and convenience that will likely come with one cannot be understated when it comes to the general public; anything that lets us think a little less about our finances is always a good thing. However, the threat of privacy and security mean it’s a path neither the government nor ourselves should race toward until we have considered every outcome, good and bad. The recent collapse of various cryptocurrency exchanges, if nothing else, has given us a snapshot of the worst case scenario when a digital currency fails; if a whole country were to suffer a similar fate it would be an unprecedented catastrophe.

The Reserve Bank of Australia (RBA) have released a report compiling their findings involving the use cases of a potential CBDC. The pilot CBDC launch uncovered a number of benefits as well as shortfalls but a future with a digital Australian dollar is sooner rather than later.

To prepare yourself for a digital future, download CobWeb Pay today. It’s your ideal partner for all fiat and crypto currency needs.

Disclaimer: Approach cryptocurrency investments with prudence, recognising their speculative nature and inherent risks. Exercise caution during the initial stages of investment and take time to familiarise yourself with the market dynamics. Seek guidance from financial experts and employ a diversified investment strategy to mitigate potential losses.