Digitizing the global financial system in progress

The digitalization of the global financial system is under debate by the major world economies. Adapting to the digital age will lead to the largest wave of staff reductions in 2015. The move to new technologies calls into question legal frameworks, security and education.

In retrospect of 2019, regarding the legislation of digital assets, we recall that within the World Economic Forum, 40 central banks express their interest to CBDC – the digital currency issued by a central bank. Interest has strengthened by the end of the year and China, Turkey, France, Germany, Switzerland, USA are beginning testing for CBDC.

China is pro for digitizing the global financial system

Even though China has shown us a “lack of interest” to the crypto industry in the past, much has changed at the end of the year. On December 24, the CSRC financial authority accepts a request for an ETF that will monitor projects using blockchain technology. On January 1, China announces that it will implement a password law (Password Law) that will pave the way for digital currency. Likewise, President Xi Jinping has a positive attitude towards new technologies:

“We must take the blockchain as an important breakthrough for the independent innovation of core technologies, clarify key directions, increase investments, focus on a number of key technologies, and accelerate blockchain development and industrial innovation.”

There are strong signs that in 2020 we will have events of interest from China.

Turkey is taking steps towards digitization

As of July 2019, the Turkish government plans to launch a digital currency issued by a central bank. The Eleventh Development Plan for 2019-2023 includes a proposal to launch a digital currency based on Blockchain. Moreover, a statistical study carried out by ING shows that Turkey is the most optimistic country regarding the future of cryptocurrencies.

On December 30, 2019, BiGA Digital Gold is launched, a platform that offers banks a blockchain-based system for issuing, repaying and transferring digital gold. In addition to the initiator of the Takasbank project, the state lenders Ziraat and Vakif, the private lender Garanti BBVA and the private banks Albaraka Turk, Kuveyt Turk and Ziraat are also participating.

“There are also additional functions on the BiGA platform, including integration with the Gold Transfer System, clearing authorization, as well as monitoring and reporting tools,”

communicates Takasbank.

France, Germany and Switzerland support CBDC

It all started from Libra. Both governments and central banks do not agree with a digital currency run by corporations. Germany and France have said they will do everything possible to block the access of Libra cryptocurrency in the respective countries.

Agustin Carstens, the head of Bank of International Settlements (BIS), warned central banks that they should not give up the role of guardians of the global financial system in favor of cryptocurrencies.

The President of the European Central Bank (ECB), Christine Lagarde, has again expressed public views on digital assets.

“My personal belief on the problem of stable cryptocurrencies is that we must not lose the position of leaders. Clearly, there is a demand for these and we must respond. “

In Romania, in 2018, the digitization of Europe was discussed at the round table organized by the Ministry of Communications. Victor Vevera, technical director of the research institute in the IT field of Bucharest, mentions that due to lack of education it is difficult to advance.

“With the help of private market partners we started education projects for new technologies, namely blockchain”,

adds Victor Veverea.

Digitizing the global financial system is a simple process, but difficult at the same time. The lack of education makes it very difficult to implement. How do you see digitization in the next decade?