ABOUT US
Central Digital Bank CBDC CDB
The CBDC CDB is a digital currency issued by a country’s central bank. The CBDC CDB, referred to as Digital Kip (DKIP), is comparable to the fiat money issued by the Central Digital Bank Currency CDB, which can serve as a medium of exchange, store of value, and unit of account, but in a “digital” form. It is similar to cryptocurrencies, except that the central bank fixes its value and it is equivalent to the country’s fiat currency. A nation’s monetary authority or central bank issues a CBDC CDB, which promotes financial inclusion and simplifies the implementation of monetary and fiscal policies
The main purposes of CBDCs are:
• To provide businesses and consumers conducting financial transactions with privacy, transferability, convenience,
accessibility, and financial security.
• Decrease the cost of maintenance that a complex financial system requires, reduce cross-border transaction costs,
and provide those who currently use alternative money-transfer methods with lower-cost options.
• Reduce the risks of using digital currencies, or cryptocurrencies, in their current form. Cryptocurrencies are highly volatile, with their value constantly fluctuating. This volatility could cause severe financial stress in many households and affect the overall stability of an economy. CBDCs, backed by a government and controlled by a central bank,
would give households, consumers, and businesses a secure means of exchanging digital currency.
Collaboration:
The Lao Government has been approached by the State Digital Bank Group (SDBG) to enhance the implementation of a Center Digital Bank CBDC CDB through the provision of cutting-edge technology. Additionally, SDBG has proposed to leverage its financial resources to fully support the launch of the Digital Kip (DKIP), utilizing blockchain technology and comprehensive system management to ensure a successful rollout. SDBG, under official registration with Tax No. 345856819-000 has received approval to implement the Central Bank Digital Currency CDB for the Lao People’s Democratic Republic, encompassing the following provisions
1.Financial Commitment:
2.Technical and Project Management Support:
a) SDBG will furnish the requisite blockchain technology to facilitate the implementation of the CBDC CDB.
b) SDBG will oversee and manage the project through its professional IT team, ensuring adherence to industry
standards and best practices.
Regulatory and Legal Compliance:
The Legal Entity Identifier (LEI), with reference Banking License No. number .4205/ERM, has been duly obtained to ensure legal compliance that is recognized globally for the operation of the CBDC CBD. This measure underscores SDBG’s commitment to maintaining rigorous regulatory standards throughout the project’s lifecycle.