⏰ Act Early, Profit Big!
Be among the first to access the newest altcoins. Don't miss out, click now!

CBDC Shockwaves: Crypto Exec’s Blunt Verdict on Insufficient Progress

  • CBDCs are currently not feasible or capable of replacing cash
  • Both central banks and private banks face challenges in issuing CBDCs
  • CBDCs tied to a specific commercial bank may raise consumer trust issues

In a recent statement, Fadi Aboualfa, the research director at Copper, a London-based cryptocurrency custody company, criticized existing central bank digital currencies (CBDCs) and argued that the system is not yet feasible.

Are Central Bank Digital Currencies (CBDCs) Inadequate?

Aboualfa emphasized that any existing or under-development CBDC model in the market does not have the technical capacity to replace cash. He stated that if this were to be achieved, it would be a significant undertaking:

There is currently no CBDC model that can technically replace cash. They all have various flaws, and for a central bank to issue a CBDC would be a major endeavor for many reasons.

Aboualfa also pointed out the challenges faced by both central banks and private banks in issuing CBDCs. He mentioned that central banks lack the capability and infrastructure to issue CBDCs or operate a decentralized stablecoin. On the other hand, he highlighted the greater risks associated with private banks.

Using Silicon Valley Bank (SVB) as an example, Aboualfa stated that if the bank were to issue a CBDC, it would lose trust in the event of a financial crisis, and the asset would become de-pegged from the dollar.

Aboualfa strongly emphasized the potential consumer trust issues if CBDCs were tied to a specific commercial bank. He stated:

CBDCs issued by commercial banks could cause chaos in decentralized markets if scandalous news hits one of the banks.

Overall, Aboualfa’s analysis suggests that CBDCs are currently inadequate and face various challenges in terms of feasibility, technical capacity, and consumer trust. The development of a truly effective CBDC model remains a significant undertaking for central banks and private banks alike.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.

BREAKING NEWS

Dormant 306 BTC Wallet Worth $35M Reactivated After 12.4 Years, Reports Mars Finance

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...

ARKK ETF Sets Record with $800 Million Inflow Amid 50% Surge in Three Months

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...

Insider Whale Boosts Ethereum Short Position to 11,111 Tokens Worth $40M Amid $168M BTC and ETH Shorts

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...

Bitcoin Drops Below $114,000 Amid 3.68% 24-Hour Decline, Market Update August 1

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...

MARKET EXTENDING LOSSES

MARKET EXTENDING LOSSES SP 500 DOWN 2% NVIDIA DOWN 3% STRATEGY DOWN...

Chainlink Introduces State Pricing to Enhance Onchain Asset Valuation on Decentralized Exchanges

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...

Bitcoin Price Faces Pressure Amid Fed Rate Cut Speculation and Trade Policy Uncertainty

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...

Bitcoin Faces Possible Rebound Toward New Highs Amid Consolidation and Institutional Buying

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...

Bitcoin Price Nears Key Support Levels Amid Market Downturn, Potential for Moderate Rebound

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...

Bitcoin Reaches $123K Amid Institutional Inflows and Market Speculation on Potential Corrections

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...

Bitcoin Momentum Shifts to Consolidation Amid Profit-Taking with Possible Range Between $105K and $110K

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...

Bitcoin’s Role in DeFi’s Potential Shift Toward Institutional Trust and Maturity

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...

Solana May Continue Leading Layer-1 Blockchains in Monthly Network Revenue Amid Price Volatility

{ "@context": "https://schema.org", "@type": "NewsArticle", "headline":...
spot_imgspot_imgspot_img

Related Articles

spot_imgspot_imgspot_imgspot_img

Popular Categories

spot_imgspot_imgspot_img