The launch comes in the wake of a USD 28 million funding round, USD 4 million from a recent public sale in October 2020, and USD 24 million of which came from their September 2018 public and private token sale in September 2018 led by Pantera Capital, Blockfolio, and Qtum.
The Cypherium mainnet aims to enable interoperability between blockchain and DLT-based infrastructures. Via the smart contract platform, Cypherium also intends to facilitate a network of open banks, providing additional utility to CBDCs and their accompanying institutions. The interoperable platform will support CBDC innovation by encouraging open banking initiatives and infrastructure to be ingrained into CBDCs.
Cypherium's proprietary algorithm, CypherBFT, is capable of up to 10,000 transactions per second. The company’s CEO has long vocalised the need for central banks to adopt principles from the cryptocurrency sector's decentralised finance (DeFi) model, allowing borrowing and lending via smart contracts, to make CBDCs interest-bearing instruments.
Qualified parties could be enabled to issue digital assets backed by real-world assets, such as real estate and stocks, using them as collateral to secure loans in CBDCs. Cypherium's primary focus is supporting CBDC functionality, specifically providing an interoperability solution to allow segregated and incompatible CBDCs to communicate and interact with each other without the use of intermediaries. This will assist CBDCs in fulfilling their potential, especially when it comes to cross-border transfers.
If you are interested to learn more about the topic of CBDC, feel free to check our central bank digital currency series here.
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