By Prince Osuagwu, Hi-Tech Editor

WITH over 10 trillion of  paper cash in circulation and over 93 percent of central banks exploring and piloting a digital version of cash, there is a need for innovations that will properly engineer the cashless society which is at the core of the digital money initiative. However, the innovations are going to do the magic, must also fit into the operations of the Financial Technology, Fintech operators.

That is apparently why the idea from modern central banking Infrastructure provider, EMTECH in introducing the Central Bank Digital Currency Innovation Kit, appears to be resonating in the sector. Having seen that technology drives growth faster in the financial sector, the Fintechs are exploring the option.

With CBDC, fintechs and financial service providers are looking to test new fintech solutions and business models with Central Bank Digital Currency.The CBDC Innovation Kit provides fintechs a set of tools with which to begin their discovery of the possibilities of a digital cash infrastructure. 

Leveraging a public distributed ledger technology known as Hedera Hashgraph, as a layer 1 protocol and ERC-20 standard for tokenization, the simulated token called Beyond Cash, is used for the purpose of innovation projects with fintech ecosystems. The kit makes, Bring Your Own App ecosystem accessible through a developer-friendly Application programming interface.

 It comes with pre-built dashboards for users as they run their tests even as the APIs allow a fintech company to embed the bring your own BYDC wallets via their app, test various types of transactions and pull wallet and transaction data from the ledger. 

According to the founder and Chief Executive Officer, EMTECH, Carmelle Cadet, “this is the company’s first CBDC offering to help Fintechs understand what’s in it for them. We’re extremely proud to officially announce this flagship CBDC offering for fintechs. Our point of view has consistently been that enabling central banks to safely deploy their CBDC as a digital cash infrastructure, not just a software application can drive inclusion, interoperability and resilience by embracing the growing fintech ecosystems.

 “From payments, savings to lending and investments, from rideshares to remittances, if the $10 trillion or more of paper cash floating in the world was issued digitally, used and accounted securely, in real time and seamlessly, cashless society will gain broader acceptance. Imagine what fintech apps could do for cash users,” he said. 

He also added that “by creating a simulator with the generic name Beyond Cash and pre-built APIs ready to use, we bring modern central banking closer to fintechs and we help our central bank clients validate what’s possible as part of their exploration.”

 “This is a first for EMTECH, and with a beta launch earlier this year, we saw the interest from fintechs who signed up for our Innovation Kit. Even without a live CBDC deployed, there’s a lot of capacity to build on fintech side as well”. 

Also, Executive Director, Africa at EMTECH, Tunji Odumuboni said, “We are eager to help explore new possibilities with CBDCs coming down the pipe. Those who get ahead of the curve have much to gain”. 

CBDC is objectively a hot topic in finance today. There are many questions and theories on what CBDCs are and are not. In our design, we take seriously the concerns on privacy and controls. By launching this innovation kit, we believe we can help showcase how we’re designing for trust and adoption.

Once established, the industry can solve challenges for the billions of people out of the banking system such as, lack of access to capital and high cost of cross border payments. – Gbemi Munis, Director Of Product at Product.

Despite their broad inclusion in Central Bank strategies, the impact of CBDC on economic and financial systems remains relatively unknown. Introducing them could present significant risks, such as issues with monetary policy transmission, efficient functionality of payment systems, and overall financial stability.

To reduce these variables, Central Banks must understand the implications of various CBDC configurations. CBDC’s Innovation Kit creates the opportunity for fintechs and other financial service providers to test those configurations in their own app much faster and with little to no risk.