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What is the future of crypto markets and central bank emissions?

What is the future of crypto markets and central bank emissions?

The former Swedish central banker also said the problems did not appear to have affected central banks’ plans for what could be a large number of digital currencies CBDC in the coming years.

The BIS, as the umbrella body for central banks from around the world, has coordinated many of the international experiments around CBDCwhich can be designed for public use or just for banks to use behind the scenes at the “wholesale” money markets.

central bank projects

“All I hear is that those who have these projects are going ahead with them,” Skinsley said. He warned that “it is necessary to be sufficiently resilient in defense and food supplybut it is also important when it comes to payment systems.”

And he stressed that it is understandable that any country wonders what recovery capacity it has, since he warned that, “although the CBDC should they make currencies more technological and easier and cheaper to send to other countries, ‘tectonic plates’ are likely to form with new forms of electronic money only fully interoperable between geopolitically aligned countries.”

He said that a total interconnection will never be achieved, although he assured that he believes that the CBDC they should be as versatile as possible. “There will be too much friction and not every country in the world will be willing to fully cooperate with every other country in the world: that is the reality,” he said about it.

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This is how he spoke in reference to the fact that eleven countries that have already launched a CBDCwhile another 100, representing more than 95% of world GDP, are studying the possibility of implementing them.

China, for example, will expand its digital yuan pilot project to most of its 1.4 billion people. He European Central Bank should be given the go-ahead for large-scale testing. The US Federal Reserve is also doing some testing, while Australia, the UK, Brazil, India, South Korea and Russia are taking important steps.

The global context for crypto

The global push comes as the use of physical cash declines around the world and authorities try to fend off the threat posed to their money-printing powers by bitcoin and “big tech companies.”

Sanctions imposed on countries like Russia and Venezuela in recent years have been another driver, even for former US allies like Europe, who want to secure an alternative to Visa, Mastercard and Swift networks.

He also responded to the low acceptance of some of the CBDCs and to the skepticism expressed, including this month by Bank of England Governor Andrew Bailey, that CBDCs can be a solution in search of a problem.

“There are some problems here,” Skinsley said. “If we extrapolate the use of cash in many countries: cash will stop being used as a means of payment at some point in the future. That opens the question of how to maintain the public policy objectives that we consider important, that is, trust in the monetary system”.

Source: Ambito

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