Internet casinos that allow players to bet with digital coins have been experiencing a boom. This boom might be given a boost soon if the US congress approves the use of digital currencies. The use of crypto coins is not new in the US because legal exchanges are operating in the country. A central bank digital currency, however, is different from cryptocurrency, although both are digital coins.
What is a central bank digital currency?
Many new online casinos are already using digital currencies. None of them is yet to use central bank digital currency since it is not yet implemented in the US. It can be equated to money issued by the central bank, meaning it is the bank’s liability. The US issues two forms of money, namely the Federal Reserve physical money and the digital money held at the Federal Reserve by commercial banks.
If congress implements CBDC, it will cease being a commercial bank liability and will become a Federal Reserve liability. When this happens, the standard paper currency will cease, and money will all be digital. People will access and use it online. CBDC is entirely different from cryptocurrency.
Advantages of central bank digital currency to online casinos
Many investors around the world are considering doing online business due to the conveniences it provides. Implementation of CBDC will bring an array of benefits over the use of cash. Online casinos will be one of the major beneficiaries.
Better security
Fiat currencies are often prone to fraud because users are often required to provide personal data. Online casinos have had to deal with fraud challenges which often lead to loss of money. CBDC is more secure because once a transaction is done, it cannot be reversed. It is powered by a digital ledger which can be blockchain technology that cannot be duplicated or counterfeited.
Quick mobile payments
Mobile technology has been vital in the boom currently experienced in the online casino industry. Sending payments online on mobile phones has had its limits, especially when dealing with international transfers. Cryptocurrency laws operate internationally, which means there are no international border limitations when making payments. CBDC laws operate locally, but gamblers will be able to make mobile payments fast.
More people wagering
Due to the high security and ease of payment provided by CBDC, more people will be willing to wager. This will be an advantage to online casinos, which will benefit from increased revenue.
How does CBDC differ from cryptocurrency, and how does this benefit online casinos?
Both are digital currencies, but their main difference is regulatory laws. CBDC is regulated by the central bank, but cryptocurrency is yet to publish any forms of regulations so far. If congress implements CBDC, it will be regulated by the Federal Reserve. This will help give the currency a stable value, unlike cryptocurrency.
The cryptocurrency value keeps changing radically to super high levels and then suddenly drops. Stability in CBDC is beneficial to online casinos because game players can predict the value of their wagers. When the value of crypto coins fluctuates too much, it becomes harder for people to wager with them. This will be different with CBDC.
