Central bank digital currency to be launched within 5 years

A study by IBM and OMFIF shows that central bank digital currencies (CBDCs) can be an excellent cash substitute for a variety of applications, including retail payments.

In a joint study
The IBM and Forum of Official Monetary and Financial Institutions (OMFIF) analysts are researchers from 13 developed economies of the world and 10 emerging markets. The study was called Retail CBDC: A New Frontier of Payments, and ran from July to September 2019.

“Central banks are responding to a reality in which 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 respond positively to cryptocurrencies of the Central Bank. 82% of representatives of central banks believe that the main threat to financial stability on the part of cryptocurrencies of the Central Bank is the high speed of banking operations.

According to analysts, the first cryptocurrency of the Central Bank is unlikely to be launched by the central bank of the country from the Big Twenty (G20). Most likely, this will make the bank a small country with a less complex economic system.

In conclusion of the study, analysts noted that the first cryptocurrency of the Central Bank 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.

The other day, Vice Chairman of the China Center for International Economic Exchange (CCIEE) Huang Qifan (Huang Qifan) said that the People’s Bank of China is the first in the world to issue state cryptocurrency.