What is driving central banks to rethink their digital currency projects?
a “solution in search of a problem.” According to Ezeji-Okoye, the reason we may be hearing more officials speaking out about their hesitancy toward CBDCs today is that during bull runs, even the most staunchly traditional central bankers feel pressured to respond to exploding market capitalizations and rising hype around digital assets. However, when a bear market ensues, the critics seem to emerge en masse.
Chen currently believes that the most common concerns regarding CBDCs include their potential to fundamentally change the global financial structure, as their launch greatly impacts the traditional commercial bank deposit-and-lending model. At the same time, interest-bearing CBDCs will divert a portion of users investing in low-risk assets.
Varun Kumar, founder and CEO of decentralized crypto exchange Hashflow, told Cointelegraph that, in his opinion, CBDCs do not make sense given that most fiat currencies nowadays are already available in some digital form. “Given the ongoing decline in cash usage, broad-based interest in digital assets, and persistent concerns about sovereignty and monetary stability, central banks appear highly motivated to continue exploring the potential of CBDCs.”
“As the technology and infrastructure for CBDCs continue to evolve, we may see more central banks becoming open to the idea of issuing a digital version of their currency. It’s important to keep in mind that this is still a relatively new area of research and experimentation, and it may take some time for central banks to fully understand the potential consequences and benefits.
“Commercial banks have the deepest capabilities in client onboarding and the execution and recording of transactions, so it seems likely that the success of a CBDC model will depend on a public-private partnership between commercial and central banks.”
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
China-backed Blockchain Project Proposes SWIFT Alternative for Stablecoins and CBDCs – Finance Bitcoin NewsThe company developing China's blockchain network is to create a system for settlements with stablecoins and state-issued digital currencies.
Lire la suite »
Davos-launched blockchain project aims to be the ‘SWIFT’ of stablecoins and CBDCsIn Davos, a Hong Kong-based blockchain company, Red Date Technology, has launched a new SWIFT-esque network for stablecoins and Central Bank Digital Currencies (CBDCs) called the Universal Digital Payment Network (UDPN).
Lire la suite »
Egg price relief hasn’t hit consumers' wallets despite cost “ease”The price of eggs is now so high it has sparked a flock of memes pointing out that it's now probably too expensive to egg your enemy's house.
Lire la suite »
San Francisco defeats BYU 82-74 despite Rudi Williams’ 28 pointsThe Cougars were led by Rudi Williams’ 28 points. Gideon George added 12 points and three steals, while Jaxson Robinson scored 11.
Lire la suite »
Coffee pods still likely bad for the environment, despite recent studyA new study found single-use coffee pods aren't as bad for the environment as previously thought — but experts are saying otherwise
Lire la suite »
Some Lunar New Year celebrations go ahead, despite Monterey Park mass shootingIncreased security measures are in place for many events throughout Southern California.
Lire la suite »