Few experts and central bankers point to control as the way forward, and supervising stablecoins and crypto exchanges will be more straightforward than exercising controls over single financial crypto products.
Money is among the several things that have experienced tech’s Midas touch. Currencies are not going through digitization. Over 105 countries, representing over 95% of GDP, are exploring Central Bank Digital Currency (CBDC) for their nationalities. CBDCs are the latest in the innovation series underway in money markets. They are virtual currencies backed and issued by a nation’s central bank.
They have been introduced to increase financial inclusion and counteract the growing power of cryptos and stablecoins. The central banks of many countries have realized that they must offer an alternative to Bitcoin or let the money future pass them by. Digital currencies have been released in 10 countries, with China’s pilot set to expand next year. Last year, Africa’s largest economy Nigeria launched its CBDC, and Jamaica launched a CBDC, the JAM-DEX.
While central bankers are busy twisting the monetary system with e-currency experiments, private players also incorporate the market with their tokens. Moreover, some bank governors are open to having private tokens issued alongside CBDCs. This is because they see private tokens as better than CBDCs.
Despite the multi-billion-dollar scale breakdown, several proficient don’t see an end to stablecoins or cryptos. On the contrary, they know the tech and innovation underlying these developments are likely central to the transforming financial system.