Government interest in central bank digital currencies (CBDCs) remains strong, with volatility in global cryptocurrency markets in mid-2022 strengthening the case for greater regulation and state involvement in the digital-currency sector.
According to ratings agency, Fitch, more central banks including the Bank of Ghana are moving towards active CBDC pilot projects.
The greatest proportion are focused on retail CBDCs, targeted at the mass market. Four have already moved beyond pilot projects to actual launches.
Still, Fitch Ratings expects wholesale CBDC initiatives will eventually prove to be less politically controversial and less technologically difficult to implement than retail CBDCs.
The use case for CBDCs has been helped by the apparent success of several pilot projects testing cross-border payment and settlement.
It said improving the efficiency of international payments has long been a priority for international regulators.
“By bringing multiple currencies and assets into a single system with participants transacting directly, cross-border CBDC pilot initiatives seek to lower costs, speed up settlement and improve transparency”.
In four key small-scale trials, those goals were achieved, according to the Bank for International Settlements (BIS).
Nonetheless, Fitch said it is still not clear that CBDCs will be the most effective tool to improve cross-border settlement, adding, “incremental improvements to existing systems, for example, may be able to offer less-disruptive paths for progress”.
Latest Stories
-
Akesse Brempong to hold ‘Davidic’ concert on April 21
11 mins -
Here’s why Dr. Steve Manteaw supports Otumfuo’s call for ECG, GRIDCo divestiture
26 mins -
Ejisu by-election: Former NPP MP files nomination to contest as independent candidate
49 mins -
Aklerh out with ‘Dancehall Queen’ EP
54 mins -
Burna Boy makes Time Magazine’s 100 Most Influential People
55 mins -
National Peace Council cautions clergy against spiteful comments ahead of December 7 polls
56 mins -
My wife sent nudes to her Dubai lover when I was battling kidney disease – Erico
1 hour -
Kudus urges West Ham to eye Ghanaian youngster Emmanuel Danso
1 hour -
Don’t be cowed into silence, defend Ghana’s democracy – Sam Jonah tells journalists
1 hour -
QNET triumphs at PR Awards 2024 with 3 prestigious wins
2 hours -
Dubai Airport slowly re-opening as UAE rainfall persists
2 hours -
Dumsor: Kumasi demonstrators demand immediate release of load-shedding timetable
2 hours -
Transport operators frustrated by long wait to hike fares
2 hours -
MTN FA Cup: Dreams FC’s quarterfinal game against Soccer Intellectuals set for May 1
2 hours -
Enimil Ashon: Season of promises and scholarship for the greedy
2 hours