Of all the advancements towards a future state economy enabled by the increasing adoption of Web3 technologies it could be argued that the most investment and resources are being poured into the creation of Central Bank Digital Currencies i.e. CBDCs.
Governments and institutions alike have teams of the best Web3 engineers and economists building and modelling CBDCs to see if they really offer the huge opportunities their promoters predict.
But changing an entire money system on a national level or even introducing a parallel new one is hard as it requires many active ecosystem participants to step in and understand, use, adopt and secure the new technology and processes.
Loyalty currencies are some of the biggest financial vehicles in the world in the collection storage and use of billions of dollars of assets individually, trillions collectively each year, but also offer a relatively lower risk entry point to Web3 on the road to CBDCs.
This paper looks at this opportunity, for Governments, Institutions, Banks and Commerce partners to test, learn and adopt Web3 financial management tools, at scale, but without the reputational risk of switching over a live money system.