According to the latest report published by economic researchers from the KIEL Institute of World Economy, the issuance of digital currencies by a central bank would prove to be more beneficial for a healthy and stable financial system.
In this report, which was published on Tuesday, June 26, the KIEL researchers have differently classified virtual currencies from cryptocurrencies like Bitcoin, Ethereum and others.
The report goes to state that cryptocurrencies are not an appropriate alternative to Central Bank Digital Currency (CBDC).
The report further goes to mention that digital currencies can provide a huge opportunity to the central banks even if they might cause “disruption” in the traditional banking system.
The Bank of Thailand and the Central Bank of Bahamas are already experimenting with this concept.
The report goes to mention that unlike cryptocurrencies, CBDC's could ensure financial stability and be used for exchange instead of just mere speculation.
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Economic researchers at the Kiel Institute for the World Economy have identified digital currencies issued by a central bank as an opportunity for a more stable financial system, while at the same time rejecting cryptocurrencies, Cointelegraph auf Deutsch reports today, June 27.
Economic researchers at the Kiel Institute for the World Economy report that central bank digital currencies could provide stability, and are different from crypto, which is too volatile
The world economy is a complex system that has undergone many different phases in the past century. As strange as it may sound today, there have been times when banking crises were rare, pay was rising alongside productivity, and the U.