Crypto trading has taken the back seat in the digital economy in 2022, with the market remaining under the bears' control for most of the year. Furthermore, traders have seen their faith rocked by the consecutive failures of centralized exchanges. These intermediary marketplaces have been the powerhouse of the industry since its humble beginnings. Now, they seem to crumble under mounting allegations of scams, lawsuits, and solvency concerns. Meanwhile, they make a convincing case for the imminent decentralization of crypto…
A report from the Bank of International Settlements indicates that nearly every nation is exploring the possible issuance of CBDCs.
As the report reads, more than half of the planet is already developing central bank digital currencies (CBDCs), or running concrete experiments.
- Covid-19 is reported as an added reason for CBDC development, given their potential role in stabilizing advanced economies.
- Right now, pandemic supply chain issues and monetary stimulus have led to record inflation in both the European Union and the United States.
- Increased cross-border payment efficiency is also cited as a potential benefit, alongside CBDC’s boasting unlimited operating hours.
- Two-thirds of central banks globally claim they are likely to issue a “retail” CBDC in the short or medium term. Certain political figures in Canada and America are outspoken critics of this proposal.
Nevertheless, the US President has called for “urgent” CBDC development in his recent executive order. The decision on whether to ultimately issue one is still being weighed.