BIS Head Warns Major Issue With CBDCs, Crypto Is Hope? – Crypto News – Crypto News
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BIS Head Warns Major Issue With CBDCs, Crypto Is Hope? – Crypto News

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Bank for International Settlements (BIS) Innovation Hub’s new head Cecilia Skingsley said on Monday central bank digital currency (CBDC) will never have full interconnectedness due to cross-border limitations.

Kingsley 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 last year’s turmoil, the crypto market has survived. She believes a new outlook on CBDC and the crypto market has emerged after the 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 are exploring them, crypto is likely the only solution for cross-border payments. 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 The 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 US Fed Chair Jerome Powell’s speech.

Also read, Binance Supports Terra Classic (LUNC) Upgrade, Will It Start A Bull Run?

Varinder is a Technical Writer and Editor, Technology Enthusiast, and Analytical Thinker. Fascinated by Disruptive Technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence, and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a substantial period and is currently covering all the latest updates and developments in the crypto industry.

The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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