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- The future of fiat money lies in the central bank digital currencies (CBDC) , reveals blockchain firm Ripple(XRP).
- More than 70% of participants from five global regions opine CBDCs have great potential in shaping the future of finance.
- Central bank of China has already expanded its CBDC pilot project in various cities
Big players in the financial sector believe the future of fiat money is central bank digital currencies (CBDC). A latest report by blockchain firm Ripple(XRP) reveals.
Published on July 15, the report mentions that more than 70% of participants from five global regions think CBDCs hold a great potential. Using which an important social change can be brought about in the coming five years including benefits such as access to credit and financial inclusion.
The survey had around 1,600 participants. It demonstrated that the popularity of CBDC is highest in the Asia Pacific region. While many countries are planning or discussing CBDCs, China’s central bank has already expanded its CBDC pilot project in various cities. Hence, taking a lead.
85% of leaders at financial institutions claim their countries will launch CBDCS within the next four years. Meanwhile 44% believe the digital currency will enhance national competitiveness. 43% opine to improve payment systems. And 42% bet on broader financial innovation.
Hurdles In CBDC Launch
The report listed several benefits of launching CBDCs. However, central banks are still facing various challenges. Some of them are identity verification,offline access,consumer education, and privacy and security protections.
The report notes that it is clear CBDCs will ultimately lead the way for more inclusive financial systems. However, there is still a lot that needs to be done. Many believe that the transformation will be timely. Some predict that it can happen by the end of this decade.
Moreover, Ripple also noted about the alternate solutions for handling challenges in CBDC launch. But countries need to choose currency to improve interoperability among currencies.
The U.S. Treasury Department further recommended improving collaboration between countries in disclosing the framework to govern global CBDCs, according to the report of Fibold.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
