Should central banks develop central bank-issued digital currencies? Most of the surveyed financial institutions say yes, according to the latest IBM report.
26 October 2018 – According to a joint study by IBM Blockchain World Wire and the Official Monetary and Financial Institutions Forum (OMFIF), the majority of global financial institutions that took part in the survey, believe that central banks should develop central bank-issued digital currencies (CBDCs).
IBM Study Explores Efficiency of DLT deployments
The study covered 21 central banks that participated in the OMFIF’s research. The report highlights that participants did not manage to find a compromise regarding whether governments should issue their own cryptocurrencies. Participants’ opinion has also been divided in regards to the associated processes of managing and accessing those CBDCs.
To be more specific, 76 percent of respondents have reportedly expressed uncertainty regarding the efficiency of distributed ledger technology (DLT) deployments. The majority of the financial institutions surveyed stated that they think that central banks should issue their own digital currencies.
Following on this, 38 percent of respondents in the study are actively exploring and testing CBDC. The rest, 63 percent are understood to not be active in this field at all.
Establishment of CBDCs
Aside from reporting statistics concerning opinions towards central bank-issued digital currencies by global financial institutions, IBM also presented a number of approaches to establish CBDCs. The report also offers guidance for institutions regarding the methods of managing the linked challenges.
Earlier this week, a senior executive at the UK -based bank HSBC Craig Ramsey stated that both CBDCs and Blockchain deployments emerge as a “great challenge” to existing real-time gross settlement (RTGS) systems.
Last week, AtoZ Markets reported that the Bank of Japan’s (BoJ) deputy governor Masayoshi Amamiya claimed that CBDCs are not likely to advance the existing monetary systems. He argued that controlling the economy via CBDCs can only work in case central banks eliminate fiat money from the global financial system.
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