FNA & Giesecke+Devrient launch world’s first central bank digital currency simulator
Giesecke+Devrient (G+D), the German security group, and Financial Network Analytics (FNA), a deep technology firm that is UK based, have announced that they have launched the world’s first central bank digital currency (CBDC) simulator.
It is believed that over 60 central banks around the world are busy developing and testing their own versions of the digital currency but if they all need to move towards a fruitful end, they would need to cooperate and come to a conclusion or a protocol that would help the various currencies to be interchangeable. Also, these digital currencies, like any other crypto, are liable to be hacked as well and so security is paramount for CBDCs.
It is here that simulators, modelling and testing would become key and software platforms like those that have been launched now by the partnering companies would play an important role in the development of CBDCs.
FNA’s Founder and CEO, Dr Kimmo Soramäki, added: “Our mission is to make the financial system safer and more efficient, and for more than a century, G+D has had the same objective, making them a perfect partner. As technology continues to change the world, how we interact with money is next in line for disruption. The unique combination and capabilities of FNA and G+D will allow us to provide the necessary software financial regulators and institutions need to prepare for the next evolution of the global financial system: the launch of the central bank digital currency.”
G+D has also invested in FNA to further their partnership beyond the platform development and it further expands the partnership between the two companies. The companies have also reported that existing investors like IQ Capital and GettyLab have also further invested in this new funding round.
Though the CBDC development has been going on for some time, it is still not very clear whether the central banks have fully and truly understood the financial and economic ramifications of such a move and whether these legacy banks have a deep understanding of how the underlying technology works as each of them work with a different technology partner.
As a security technology firm associated with several banks, G+D hopes to utilise their knowledge of how the current systems work and ensure that the banks employ high tech modelling and platforms to build their CBDCs with time.