Author: Milan Ignjatovic

Imagine how easy it would be for one computer to crack the encryption protecting our money. That is the threat Central Bank Digital Currencies (CBDCs) face due to quantum computing, and the quest to protect them is already underway. Quantum computers pose a huge threat to the encryption used by Central Bank Digital Currencies (CBDCs) and other digital infrastructure. This is because the mathematics that currently underpins encryption technologies like public-key cryptography (RSA and ECC) relies on problems that are nearly unsolvable for a traditional computer, but which would be effortlessly shattered by a powerful quantum computer using an algorithm like Shor's algorithm. How a Quantum Attack Would Work Most digital security, such as a CBDC, is built on a public-key infrastructure (PKI) where an individual has a public key…

The Digital Yuan (also called the e-CNY, digital currency electronic payment - DCEP) is among the most sophisticated Central Bank Digital Currencies (CBDCs) in development and testing today. China's drive for the Digital Yuan is not merely about financial system modernization; it's also a strategic push with profound implications for international finance, global trade, and economic hegemony. Why China Is Leading the Digital Yuan Push Control Over Financial Transactions: Digital Yuan provides the People's Bank of China (PBOC) with direct supervision over digital payments, diminishing reliance on private financial institutions and firms such as Alipay and WeChat Pay. This implies the government can better monitor, regulate, and control financial flows in the nation. Monetary Policy & Stability: The e-CNY allows China to have full control over money supply and interest…

(SPFS) is the Russian Financial Messaging System designed to ensure secure and efficient communication for financial transfers, especially where international systems such as SWIFT are unavailable or limited. In essence, it is an alternative to SWIFT, whose purpose is to improve the Russian economy and its global financial performance. Key Facts about SPFS: Purpose and Functionality:The SPFS has been built to support the continuous exchange of financial messages, such as payments, trades in securities and settlement of trade between Russian and foreign financial institutions. Similar to SWIFT, the system provides secure, encrypted messages in order to preserve confidentiality and integrity of information. Development:The system was developed by the Russian central bank as part of the steps taken to de-emphasize the country's dependence on international financial infrastructure, particularly SWIFT. The move…

Many non-EU member countries, with a high degree of "euroization," are a perfect case study for a central bank digital currency (CBDC) and its potential effects on their economies. The relationship between the currency of a non-EU state and the euro (EUR) is already quite unique. While the local currency is the official one, the euro is widely used in daily transactions, for savings, and for pricing major purchases like real estate and cars. The exchange rate of the National Bank of the non-EU member state with the euro is actively managed to maintain stability. This very high dependence on the euro is a key weakness. So, our prediction is that if the Digital Euro (CBDC) rolls out, and people express their distrust by moving away from it, here's what…

The debate continues, and many central banks and economic institutes are watching closely how the adoption of a CBDC has improved the lives of people who did not have access to banking services. The coin has two sides, and on the other hand, people are those who are adopting and learning about CBDCs, judging for themselves if the digital currency is a viable option or not. The issue remains for those who like to keep cash in their pockets. For now, a few central banks have already issued a retail CBDC, i.e., they are accessible for public use. The most well-known examples are: The Bahamas (Sand Dollar): In 2020, it was the first country to issue a retail CBDC at a national scale. Its primary objective was to improve financial…

For decades, the U.S. has lived on what economists call its “exorbitant privilege.” The dollar’s dominance as the world’s reserve currency gave America a seemingly endless credit card: it could run massive deficits without consequence, borrow at low cost, and still have foreign investors line up to buy U.S. debt. That era is fraying, and the latest developments suggest the country is walking step by step toward a painful reckoning. The Federal Reserve, once the firefighter of global finance, is now playing with matches in a dry forest. Since mid-2022, the Fed has been shrinking its balance sheet from nearly $9 trillion to about $6.7 trillion. This “quantitative tightening” may be meant to tame inflation, but it also risks starving the system of liquidity. Banks, businesses, and households depend on…

For decades, the North Atlantic Treaty Organization (NATO) was the world's unquestioned economic and military hegemon, driven primarily by the colossal power of the United States and its wealthy European allies. But with the passing of the 21st century, a new economic giant has emerged to take center stage: BRICS. Including Brazil, Russia, India, China, South Africa, and its newly expanded list of nations, BRICS is more than an emerging power but a swiftly rising challenger that promises to shake up the world economic order. We examine their past performance, current standing, and the stark predictions for the future, considering all the most important measures from GDP to debt, demography, and the boiling de-dollarization initiatives. A Look Back: NATO's Unchallenged Zenith The latter half of the 20th century was the…

Kenya is at the forefront of a shifting global economic landscape, undertaking a calculated and strategic pivot away from traditional financial systems. This move is driven by a desire to reduce its debt burden, diversify its economy, and assert greater control over its financial destiny. The core of this strategy is a dual-pronged approach involving a push for de-dollarization and a strong interest in joining the BRICS economic bloc. At the heart of Kenya's immediate plans is the negotiation to restructure a massive $5 billion loan for its Standard Gauge Railway (SGR) from China. Kenya is seeking to convert this debt from U.S. dollars into Chinese yuan. This is more than just a currency swap; it is a critical step aimed at significantly lowering interest rates and easing the financial…

For decades, central banks around the world trusted major financial hubs like London and New York to store their gold reserves. This practice, a legacy of a more stable global order, is now being rapidly reversed. In a powerful display of a new geopolitical reality, a growing number of countries are engaging in gold repatriation, choosing to bring their national bullion home. This trend is not a matter of convenience; it is a strategic move for financial sovereignty and security in an increasingly uncertain world. The Driving Forces Behind the Trend: Geopolitical Risks and Sanctions The primary catalyst for gold repatriation is the rising geopolitical risk and the weaponization of the global financial system. The freezing of Russia's foreign currency reserves in 2022 served as a stark wake-up call for…