More Institutions Support Launch of CBDCs, New Study Reveals

CBDCs have been lauded as the next avenue for mainstream adoption of cryptocurrencies. A number of top financial institutions have stepped forward to provide their view on the subject. 


When Will Central Banks Adopt CBDCs?

Research by IBM has revealed that top financial bodies want central banks to come up with CBDCs. The study was conducted by IBM Blockchain World Wire and the OMFIF.

The results were released on Thursday and involved 21 central banks. The banks took part in a survey by OMFIF. The survey was conducted between July and September of last year. Participants who took part in the surveys stated that there was no hindrance factor for banks not to issue the currency. Additionally, the players did not agree on how to control and access the CBDCs.

According to 76% of the respondents, they were not certain regarding the effectiveness of DLT integration in the financial sector. On the other hand, prominent financial facilities observed that they believe it is time central banks rolled out digital currencies.

Another 38% of the respondents confirmed that some institutions are studying the idea of launching their own CBDC. The other 62% have not shown any interest in the sector. The IBM study also recommended a number of measures on setting up CBDCs. The tech giant also provided a guideline for central banks on how to tackle the challenges that come with CBDCs.

Early this week, Craig Ramsey from HSBC stated CBDCs and blockchain technology might be a risky affair to already established RTGS platforms. Elsewhere, BOJ deputy head Masayoshi Amamiya stated that CBDCs might not have an impact on RTGS. According to Amamiya CBDCs are only operational if central banks remove fiat currency from circulation.

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