IBM, the giant of technology, believes that the central banks begin to issue their own digital currencies (CBDC) in 5 years. Despite the fact that some already have suggested to have some degree of interest in them, the company believes that there are still a few years for that to become a reality. This information is in accordance with a report conducted by IBM and the Official Forum of Monetary and Financial Institutions (OMFIF). In this research, it is established that the central banks around the world are beginning to admit that the CBDC (in English, Central Bank, Digital Currency) could be a good substitute for cash. It is study, titled “CBDC retail: the next frontier of payments”, was made in July of this year. Studied banks from 13 advanced economies and 10 emerging markets. “The central banks are responding to the reality that digital currencies, whether private or public, will soon be part of the global monetary system, and that they are interested in to make sure that not to remain or move”. In addition, the report points out that 73% of the central banks have been talking in favour of the CBDC. However, 82% fear the risk that they could represent their use for financial stability. Along with that, the central banks believe that these digital assets should be available offline. This is so that they can function wherever they use cash. This is one of the biggest problems that financial institutions have with the CBDC. And is that dependent on a good connection to make payments can lead to problems in countries with deficient services of the Internet. As, for example, some of Africa and even Latin america.
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The CBDC will come in 5 years
But, despite the doubts, IBM maintains its stance on the digital currencies of banks will come in 5 years. Their report assures that: “The main conclusion is that it is likely we will see the introduction of a central bank, that is to say, trust, digital currency retailer in the next five years, either as a complement or as a substitute for banknotes and coins”. Even the research ensures that it is unlikely that the CBDC to come from a central bank in the G20. On the contrary, it is believed that the first asset of this type will come from an economy that is smaller and less complex. This with the goal of addressing a policy in specific. Could also be implemented as a mechanism for the recovery of the payments system of a country. Equally, it could be used for the expansion or financial inclusion. Already countries such as China have demonstrated a certain interest by the CBDC. However, it is not yet known when it might materialize this project. And, although IBM bet for 5 years, we will have to wait to see if they had right in their predictions. The following two tabs change content below. I am a student of International Studies, interested in new technologies and their impact on the world. A true believer that tenacity is the foundation of success.