Analysts Believe CBDCs Will Ultimately Compliment Crypto

2021-6-16 19:21

Analysts from CoinShares believe that central bank digital currencies (CBDCs) are not a competitor to crypto and rather a complementary currency offering.

The vast majority, around 90%, of central banks have begun working on their own digital currencies. Reports suggest that some of those banks could release a viable product within the next few years according to a survey from the Bank for International Settlements (BIS).

Central banks are exploring the world of CBDCs and exploring whether they can help achieve public objectives. Such goals include safeguarding public trust in the currency, a stable price, and creating a safe payment system and infrastructure. If the banks are successful and economies move to the digital realm, the public would retain access to the safest form of money, according to some.

Expect an expansion of payment diversity, faster and cheaper cross-border payments, and even quicker fiscal transfers in emergencies. 

In an interview with Reuters, Meltem Demiorors, chief strategy officer at CoinShares, was quoted as saying that CBDCs “is structurally no different than fiat, and they are very much complementary to crypto, not competitive.” 

Kevin Kelly, head of global macro strategy at Delphi Digital had similar hopes for the coexistence of CBDCs and cryptocurrencies. Kelly stated that he expects CBDCs to improve upon the existing monetary system with a smoother transmission of fiscal policy.

He added that this will also likely aid crypto markets by bridging the gap between fiat and DeFi. 

Some analysts disagree 

While most analysts agree that CBDCs will benefit both fiat and DeFi, some are not as optimistic. Todd Cipperman, the managing principal at Cipperman Compliance Services believes that some nations would put cryptos on the back burner and promote their own currencies first.

“Could the United States government create its own U.S. digital currency and say we believe in crypto, but only this crypto? Sure, I think that could absolutely happen,” said Cipperman. 

It is easy to see how some governments would make this move. Nigeria, for example, has gone from outright banning commercial banks from working with crypto exchanges to announcing their own digital currency is in the works.

The interviews conducted were part of a series on digital currencies hosted by the Reuters Global Markets Forum.

The post Analysts Believe CBDCs Will Ultimately Compliment Crypto appeared first on BeInCrypto.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Emerald Crypto (EMD) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 4.67 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Цена в час новости $ 0.0095806 (-100%)

analysts cbdcs believe crypto compliment ultimately currency

analysts cbdcs → Результатов: 4


CBDC’s Unlikely To Threaten Cryptocurrencies, Market Has Evolved: Morgan Stanley Report

As central banks worldwide continue to establish their digital currencies, one of the largest US investment banks, Morgan Stanley, says they won't be a threat to cryptocurrencies. Analysts at Morgan Stanley believe that both central bank digital currencies (CBDCs) and cryptocurrencies would co-exist because they are not the same and serve different purposes.

2021-4-15 22:12


Could Central Bank Digital Currencies Be Better Than Virtual Currencies? Or Ride And Die Bitcoin?

Virtual currencies have been growing during the last years. Bitcoin has reached $20,000 dollars and several experts believe that it could be able to replace gold. However, there are some analysts that suggest that Central Bank Digital Currencies (CBDCs) could replace virtual currencies as we know them. Just a few weeks ago, Christine Lagarde, the […]

2018-11-26 13:44