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The rapid development of central bank digital currencies could help to boost financial inclusion and stability, but they pose a threat to banks and could weaken their ability to lend, according to a report by Fitch Ratings.
CBDCs would help to speed up cashless payments and could bring underbanked communities into the financial system in many emerging markets.
In the Bahamas, for instance, where the Sand Dollar CBDC was introduced in October, low-value CBDC transactions can be carried out using just a phone number or an email address for identification.
“The deployment of CBDCs will create opportunities to strengthen financial system inclusion, innovation, resilience and efficiency, but may also give rise to new risks,” said Monsur Hussain, an analyst at Fitch Ratings and co-author of the report.
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This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.
Middle Eastern Central Bank Digital Currencies and the World 03 May 2021
5
There seems to be a global rush to develop the first Central Bank Digital Currency (CBDC)
Trade regions like the Middle-East are uniquly positioned to take advantage of CBDC as energy and global trade trends shift
Some countries are already making strides developing CBDCs like China and smaller island nations
The risk of privacy invasion with CBDC seem almost impossible to seperate and can increase usage of excisting crypto assets
External | what does this mean?
This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.
Middle Eastern Central Bank Digital Currencies and World 3 hours ago
3
There seems to be a global rush to develop the first Central Bank Digital Currency (CBDC)
Use regions like the Middle-East are uniquly positioned to take advantage of CBDC as energy and global trade makes shift
Some countries are already have made big strides with CBDC including China and smaller island nations
Risk and concerns over privacy with CBDC seem almost impossible to seperate from the technology at this point which could increase usage of excisting crypto assets