Ripple survey finds most finance leaders see CBDCs disrupting fiat

Rick Steves

Beyond financial inclusion, many respondents believe CBDCs will deliver enhanced national competitiveness (44%), greater efficiencies within their payment systems (43%), and advance innovation more broadly (42%).

The potential for central bank digital currencies (CBDCs) has generated an overwhelming consensus among financial institutions, according to the findings of a survey by Ripple Labs that obtained answers from 1,6000 respondents.

Ripple asked “1,600 finance leaders around the world” about CBDCs only to discovery that more than 70% of respondents surveyed across five global regions believe CBDCs stand to deliver major social change within the next five years, with Asia Pacific ranking the highest at 89%.

Four out of five regions see financial inclusion or greater access to credit as the largest potential breakthrough to be driven by CBDCs, the report stated, reminding that Ripple has been behind some of the real-world CBDC initiatives including Bhutan’s intention to deliver more efficient and cost-effective payments using a CBDC in order to meet its goal to increase financial inclusion to 85% by 2023.

CBDCs are believed to enable faster and more affordable payments as well as making loans and other financial services more accessible to historically underserved communities because of its ability easily to secure and repay loans, and build credit history.

Education, ID, offline, privacy, security are hurdles to CBDCs

“A government-backed digital currency could also facilitate easier distribution of funds for social welfare programs, as seen with stimulus efforts in the recent pandemic”, said the announcement, which admitted real-world limitations standing in the way of broad CBDC rollout and adoption.

“Consumer education, identity verification, offline access, and privacy and security protections are all hurdles to implementation. Alternatives and solutions exist for these challenges, but they must be solved at scale and in agreement between countries to ensure interoperability among currencies”.

According to a report by the Bank for International Settlements, nine out of 10 central banks are exploring CBDCs, which goes in line with Ripple’s findings that eighty-five percent (85%) of leaders at financial institutions think their country will launch a digital currency within the next four years.

Beyond financial inclusion, many respondents believe CBDCs will deliver enhanced national competitiveness (44%), greater efficiencies within their payment systems (43%), and advance innovation more broadly (42%).

In the meantime, the People’s Bank of China recently announced it would expand its pilot of the e-CNY to more cities, and Norway is testing its own prototype for a CBDC.

Read this next

Financewire

Kinesis Mint becomes the official partner for the House of Mandela

Kinesis Mint, the certified independent precious metals mint and refinery of Kinesis, the monetary system backed by 1:1 allocated gold and silver, has been appointed the exclusive coin producer for the House of Mandela.

Chainwire

Kadena Announces Annelise Osborne as Chief Business Officer

Kadena, the only scalable Layer-1 Proof-of-Work blockchain, expands its leadership team by onboarding Annelise Osborne as Kadena’s new Chief Business Officer (CBO).

Fintech

TNS brings full-stack market data management to EMEA

“We are also delighted to have Ben Myers join our London-based TNS Financial Markets team as Head of Strategic Sales for EMEA, to bolster our presence in the region.”

Chainwire

Velocity Labs and Ramp Network facilitate fiat to crypto onramp on Polkadot via Asset Hub support

Velocity Labs is proud to announce a fiat to crypto onramp using Ramp Network through the integration of Asset Hub. Through it, Ramp will be able to service any parachain in the Polkadot ecosystem.

Executive Moves

INFINOX hires Mayne Ayliffe as Global Head of HR

“I look forward to working with our teams around the world to develop a strategic HR agenda that supports high performance and is centred on human motivation.”

Fintech

Sterling to provide risk and margin support for fixed income

“Firms must have the tools to effectively manage their risk across all asset classes. As yields rise, we see more exposure from clients in the fixed income space. We understand their need to measure and mitigate risk in a highly regulated environment.”

Retail FX

FXOpen launches HK share CFDs: Tencent, Alibaba, Xiaomi, Baidu

Hong Kong share CFDs will be commission-free for a limited period of time.

Retail FX

IronFX Celebrates an Award-Winning Start to 2024 with a Series of Industry Recognitions

IronFX, a global leader in online trading, has embarked on 2024 with a spectacular display of accolades that highlight its commitment to excellence and innovation in the competitive financial services sector.

Industry News

FIA urges CFTC to regulate use cases rather than AI itself

“We urge the CFTC to refrain from crafting new regulations that generally regulate AI because this approach presents certain well-known pitfalls. By approaching the issue from the perspective of AI as a technology, rather than the use case for the technology, corresponding regulations would likely necessitate a definition of AI. We anticipate that any attempt to properly define AI would be very challenging and require considerable resources.”

<