BAFI3254 Financial Instruments and Technology

Question:

There has recently been increasing international focus on the possible issuance of central bank digital currencies (CBDC), or what might be considered a digital equivalent of banknotes. The Reserve Bank announced that it will partner with Commonwealth Bank, National Australia Bank, Perpetual and ConsenSys Software, a blockchain technology company, on a collaborative project to explore the potential use and implications of a wholesale form of central bank digital currency (CBDC) using distributed ledger technology (DLT). While central banks around the world are developing sovereign digital currencies to improve international payments, one concern that has emerged is that a foreign digital currency could displace a domestic one, especially in smaller Asian nations with less effective financial systems

In this assessment, you are required to conduct research on central bank digital currency (CBDC). Through the case analysis, you are required to answer the following questions:

  1. What is CBDC and why it is getting increasing attentions? (Critically evaluate its value proposition)
  2. Critically evaluate the empirical applications of CBDC up to date and why certain countries pursue more aggressively?
  3. What are the obstacles facing the adoption of CBDC in the near term?

Identify the nature and key components of financial systems domestically and globally to apply in diverse contexts.

Analyse the characteristics and functions of the main financial intermediaries operating in financial systems in a global context.

Understand the roles of financial markets and the recent developments of financial technology.

Identify the application of technology in financial services and wealth management.

Prepare a research report by addressing the following questions:

  1. What is CBDC and why it is getting increasing attentions?
  2. What are the risks and benefits of CBDC?
  3. What is the current development status of CBDC across the world and why certain countries pursue it more aggressively?
  4. What are the obstacles facing the adoption of CBDC in the near term?

Academic integrity is about honest presentation of your academic work. It means acknowledging the work of others while developing your own insights, knowledge and ideas.

  • Acknowledged words, data, diagrams, models, frameworks and/or ideas of others you have quoted summarised, paraphrased, discussed or mentioned in your assessment through the appropriate referencing methods
  • Provided a reference list of the publication details so your reader can locate the source if necessary. This includes material taken from Internet sites

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QUALITY: 100% ORIGINAL PAPER – NO PLAGIARISM – CUSTOM PAPER

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