April 23, 2024

IBM: Central Bank cryptocurrencies will appear in 5 years

IBM and OMFIF Study Shows Central Bank Digital Currencies (CBDCs) Could Become an Excellentcash substitute for various applications, including retail payments.

In a joint study by IBM and the Forumofficial monetary and financial institutions (OMFIF) analysts researchers of 13 developed economies of the world and 10 emerging markets. The study was called “Retail CBDCs: The New Frontier of Payments” and took place between July and September 2019.

“Central banks respond to reality inwhich digital currencies, whether private or public, will soon become part of the global monetary system. And the Central Bank should take steps in order not to be left behind innovation, ”the researchers note.

It is reported that 73% of global banks are positivespeak about the Central Bank's cryptocurrencies. 82% of central bank representatives believe that the main threat to financial stability from Central Bank cryptocurrencies is the high speed of banking transactions.

According to analysts, the first cryptocurrency of the Central Bank is unlikelywill be launched by the central bank of a G20 country. This would most likely be done by a bank in a smaller country with a less complex economic system.

At the conclusion of the study, analysts noted that the first Central Bank cryptocurrency should appear within 5 years.

“We will see the central bank's retail digital currency for five years. It will be put into circulation together with fiat money, or as a replacement for banknotes and coins, ”the report says.

Recently, the Deputy Chairman of the ChineseCenter for International Economic Exchange (CCIEE) Huang Qifan said that the People's Bank of China will be the first in the world to issue a state-owned cryptocurrency.