In Europe, It Has Been Suggested That Working On A CBDC May Be Pointless

The Center for European Reforms suggested that the creation of digital currencies of Central Banks may turn out to be a waste of time.

Creating Central Bank Digital Currencies (CBDCs) can turn out to be a waste of time for their developers. This opinion was expressed by the Center for European Reforms, writes Bloomberg. 

The think tank said that in order to increase competitiveness and reduce payment prices, Europe should focus not on CBDC, but on regulation. The center warned that the economic benefits and level of privacy from using CBDCs are unlikely to be enough to encourage citizens to use the digital currency. If you don’t have a clue about how to deal with all these tokens and trading – check out biticodes demo

“Without widespread adoption, CBDCs will be an expensive failure and do little to advance the goals of central banks,” said Zach Meyers, a senior fellow at the center.

The CBDC solution is being studied in approximately 100 countries around the world, the publication notes. Proponents of state digital currencies try to exclusively advertise the advantages of a digital analog of traditional money: from the expansion of access to financial services to the reduction of commission costs.

The think tank said that in order to increase competitiveness and reduce payment prices, Europe should focus not on CBDC, but on regulation. The center warned that the economic benefits and level of privacy from using CBDCs are unlikely to be enough to encourage citizens to use the digital currency.

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“Without widespread adoption, CBDCs will be an expensive failure and do little to advance the goals of central banks,” said Zach Meyers, a senior fellow at the center.

The CIS market is also working on digital state currencies. In Russia, they believe that the digital ruble will simplify cross-border transfers. In Ukraine, three scenarios for the use of the digital hryvnia are mentioned at once, and Belarusian bankers see absolutely no sense in a digital version of the local ruble. More experts opinions can be found on DEX aggregator

One way or another, so far CBDCs are not suitable for all countries, and this is recognized even by the International Monetary Fund (IMF). Thus, earlier, the head of the IMF, Kristalina Georgieva, said that countries will have to pay for financial stability and confidentiality to introduce digital state currencies.

Read the BeInCrypto editorial about why, according to the ex-head of the Bank of Japan, US sanctions will accelerate the development of CBDC.

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