Sign Up on MEXCBreaking: BIS Head Warns Major Issue With CBDCs, Expresses Hope On Crypto
Bank for International Settlements (BIS) Innovation Hub’s new head Cecilia Skingsley on Monday said central bank digital currencies (CBDC) will never have full interconnectedness due to cross-border limitations.
Skingsley highlights the crypto market recovery seen in 2023 despite last year’s turmoil such as the collapse of the crypto exchange FTX and hopes the industry will learn from these failures.
BIS Warns About Limitations of CBDC
Cecilia Skingsley, head of BIS Innovation Hub, warned central bank’s efforts to push for central bank digital currencies will face geopolitical limits, reported Reuters on February 6.
Skingsley noted crypto market recovery is pushing crypto prices higher, increasing investors’ sentiment on cryptocurrencies. Despite the last year’s turmoil, the crypto market has survived. She believes a new outlook on CBDC and the crypto market has emerged after turmoil.
“I would assume that the industry will learn from these failures and they will come up with new things.”
Cecilia Skingsley agrees that CBDCs make currencies more high-tech, easier, and cheaper to send to other countries. However, it will divide countries based on their CBDC and not all countries in the world will be prepared to cooperate fully with all the other countries in the world. CBDCs will never have interconnectedness due to cross-border limitations.
She hinted at the low acceptance of some CBDCs, while others such as Bank of England head Andrew Bailey have raised doubts on whether their CBDC will be accepted or not in other countries.
“That opens up the question of how do you maintain public policy objectives that we think are important – namely trust in the money system.”
Crypto Is the Key
While 11 countries have already launched a CBDC and over 100 other countries exploring them, crypto is likely the only solution for cross-border payment. The move comes as physical cash use falls globally and authorities look to maintain their money-printing powers from threats such as Bitcoin and ‘Big Tech’ firms.
However, Bitcoin price rise of over 40% last month has shown the resilience of the crypto market. Bitcoin price is currently trading at $22,879, down over 1% in the last 24 hours ahead of U.S. Fed Chair Jerome Powell’s speech.
Also Read: Binance Supports Terra Classic (LUNC) Upgrade, Will It Start A Bull Run?
- Ethereum Faces Selloff Risks As Whales’ Unrealized Profit Hits 2021 Highs
- Expert Predicts 138% Shiba Inu Rally as SHIB Futures Listing Opens Spot ETF Path
- Bitcoin Will 200x From Here, Twenty One Capital CEO Says as BTC Breaks $117K After Fed Rate Cut
- BNB Chain Takes Lead in RWA Tokenization, Expert Sees BNB Rally to $1,300
- Grayscale’s GDLC Fund Holding SOL and ADA Gets SEC Nod for NYSE Debut
- HBAR Price Prediction as SEC Approves Generic ETF Framework – Analyst Targets $1.80
- Toshi Coin Gains 57% in One Day: What’s Driving the Sudden Upside?
- Shiba Inu Price Set to Soar as Exchange Reserves Dive Amid SHIB ETF Chatter
- Pepe Coin Price Prediction as Whale Moves $25M From Robinhood- Is a Breakout to $0.00002 Next?
- XRP Price Prediction as Market Longs Hit 78% amid VivoPower Treasury Expansion Launch — Is $4 Next?
- SHIB Price Forecast: Taker Buys Lead as Developers Counter Shibarium Exploit
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
