Saad Ullah
A survey which was carried out recently among the financial institutions in the world today reaffirmed their belief that it would be a good development if the central bank of their countries issues out digital currencies which are owned and used by the central bank. This study was conducted by IBM which was in conjunction with the Blockchain world wire and other organizations such as the Official financial and monetary institution forum which is also known as the OFMIF
This survey was taken among 21 different central banks around the world. While both of them agreed that the government should issue and use a digital currency, there were quite unsure of if a new digital currency should be created by the government. They were unsure over the processes which would be involved in managing these cryptocurrencies.
In the case of distributed ledger technology, a very large percentage of people or respondents in the survey were very pessimistic about how success ventures into that would be. Many financial organizations who went through these surveys noted that it would be most better if the central banks themselves would create a cryptocurrency of their own.
About 38% of persons who were surveyed expressed confidence in the fact that most financial organizations were contemplating the use of central bank digital currencies (CBDC) while the other large portion showed no interest whatsoever.
This survey and report also focus on the various techniques which can be used with a CBDC and how to overcome various obstacles which may arise from it.
It is clear that challenges would certainly result from the use of CBDC. This was even confirmed by Craig Ramsey who is among the top guns in the bank which is based in the UK. He explained that the use of the CBDC would create a huge problem in the midst of the financial world due to the fact that it contradicts the systems that still deal with real-time gross settlements.
Should be remembered that just last week, Masayoshi who is the deputy governor of the central bank of Japan asserted quite strongly that the integration of the CBDC into the financial system would do absolutely nothing to improve the financial and economic system in mind right now. This only thing we can do is to remove the use of the fiat currency if we so badly want to see a difference.
Saad Ullah
