State-backed digital currencies can disrupt financial systems: Report
While CBDCs could help central banks address the decline in cash payments, some risk factors remain. Central bank digital currencies, or CBDCs, could pose a threat to financial systems if related risks are not managed, Big Three credit agency Fitch Ratings has warned.Fitch Ratings released a report on Monday entitled “Central Bank Digital Currencies: Opportunities, Risk and Disruption,” which discussed the major trade-offs between risks and benefits associated with CBDCs.Fitch Ratings stated that the key benefits of a retail CBDC lie in its potential ability to expand government-backed....
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Digital currencies could disrupt the ability of central banks to exercise control over the economy or issue money should the technology scale, the Bank for International Settlements (BIS) said in a new report released today. The BIS, a financial entity cooperatively owned by the world's central banks, said that it has been looking at the technology as early as November 2013, and in February of this year the Committee on Payments and Market Infrastructures (CPMI) asked a working group to draft the report it published today. The report outlines how digital currencies like bitcoin as well as....
A new report by the Deloitte Center for Financial Services predicts that permissioned blockchain payment systems will see “significant transaction volume” by 2020. Such systems, the report said, could reach the scale of the ACH network, which processes 23 billion transactions annually, by 2025. Elsewhere, it projects that bitcoin and digital currencies will go mainstream, but that many alternative cryptocurrencies would likely vanish or be replaced by “state-sponsored” digital currencies. Deloitte's findings come as part of a broader report assessing how disruptive forces are expected to....
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