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Huge interest of central banks in CBDC according to BMR research

Cryptodnes2024/06/25 01:13
By:Cryptodnes

Although the US House of Representatives decided to pass a law that would prohibit the Federal Reserve from issuing central bank digital currency (CBDC), global interest in these currencies continues to grow.

The Bank for International Settlements (BIS) latest research covered a total of 86 banks from around the world and determined that wholesale is a better platform for the future than retail.

The recent survey conducted by BMR, which aimed to test the reliability of the technology behind these new digital contracts, shows that 94% of central banks are currently participating in a CBDC survey.

Let's explain it in a similar way; Wholesale CBDCs are intended for transactions between banks and financial institutions such as Visa and MasterCard, while retail CBDCs are primarily intended for consumer transactions, such as buying a cup of tea at the coffee shop.

They also state:

“In the case of retail CBDCs, more than half of central banks are considering features such as blocking of funds, operational integration and zero-fee.”

READ MORE:
BRICS: Bitcoin Could Completely Change World Finance - IMF

It should not be overlooked that the financial industry has its reservations about CBDC. Opponents argue that they will lead to more regulation and control by the public sector, which will limit the growth of innovation in "the free ones” sectors.

Globally, interest in digital currencies has been steadily increasing over the past few years. The People's Republic of China established itself as the first participant, and Nigeria and the Bahamas also introduced their digital currency - the electronic naira (e-naira) and the sand dollar (sand dollar), respectively.

On the other hand, former US President Donald Trump has strongly opposed the idea of ​​digital money. During one of his pre-election campaigns speech in New Hampshire, he mentioned his promise to future voters to abolish the CBDC in the event of his re-election to the presidency, which he said should be seen as “a serious threat to the free will of citizens". He hinted:

“As your president, I will never sanction the creation of a state-issued digital currency. Such a coin would give our government the full power of absolute control over your funds”.

The former president also share recently on X (Twitter) that the mining of Bitcoin is the last chance to push back against CBDC.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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