The emergence of digital currencies will lead to the disappearance of private banks – opinion
CBDC will give central banks a monopoly on dirty financial policies, FT says
China is the main trigger of the currency digitalization race
Russia, rather Total, also will be dragged into the global redistribution of the world’s currency
International business newspaper Financial Times also considers, that the release of CBDC paper bills and coins may remain in the past due to new financial instrument – digital currency central banks (CBDC). As … More will hit the privacy of customer data hard and freedoms in digital space
According to FT, CBDC implementation can undermine private banks, especially during crises, given the fact that individuals and large enterprises will be able to conduct banking operations directly with the state, and not through an intermediary.
“…It was it would be foolish to risk leaving deposits with a private lender, ”the FT noted.
The rapid development of the Chinese national digital currency, according to the FT, calls into question the balance of the global monetary order.
“Beijing has made it clear that intends challenge domination dollar as a world currency. Digital yuan China’s financial regulator for several years working over creation of digital asset. During this time in networks a large quantity… More accelerate the achievement of this goals and will bypass competing Western cross-border payment networks such as Swift, which USA used for ensuring compliance with the sanctions “, – emphasizes the edition.
Based in London international The business newspaper calls for a focus on improving existing payment networks, rather than searching new technical solutions, “which at all their innovations may to create more problems, than decide”.
The last survivor
The London newspaper’s warning sounds after Togo, as a member of the board of directors of the US Federal Reserve System Lael Brainard confirmed the study by the regulator of the possibility and prospects of issuing CBDC.
Brainard admits significant damage to the American economy due to the impact of the coronavirus pandemic.
Restoration of the western market will take much more time compared to the 2008 crisis of the year, and the clear desire of the Celestial Empire to unleash the race of currency digitalization will leave no other choice either for the West or for European countries, and in the long term Of Russia, Besides how to join the digitalization of the economy.
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