New Ripple survey shows 70% of financial executives believe CBDCs are the future of fiat
A new report from blockchain company Ripple (XRP) indicates that major players in the financial industry see central bank digital currencies (CBDCs) as the future of fiat money.
The Ripple New Value Report published July 15 said more than 70% of respondents from five global regions believe CBDCs have greater potential to drive vital social change over the next five years with benefits such as financial inclusion and access to credit.
The survey, which garnered feedback from 1,600 respondents, indicated that the Asia-Pacific region leads in popularity of CBDCs. In the region, China’s central bank is taking the lead after recently announcing plans to expand its CBDC pilot to more cities.
Notably, 85% of financial institution executives are confident that their respective countries will unveil CBDCs within the next four years. In addition to improving financial inclusion, they estimate that a digital currency will make their countries more competitive at 44%, improve payment systems at 43%, and advance financial innovation at 42%.
Challenges related to the deployment of CBDCs
Although the report highlighted the exceptional benefits of deploying CBDCs, central banks still face challenges such as consumer education, identity verification, offline access, and privacy and security protections. safety along the way.
“Ultimately, the consensus on the potential of CBDCs to build more inclusive financial systems is clear. While much work remains to be done, many expect the transformation to be timely and that we will begin to see the fruits of this transition before the turn of the decade,” the report states.
Additionally, Ripple has acknowledged that there are alternative solutions to address the current barriers to CBDC deployment. However, alternatives must be agreed between countries opting for the currency to improve interoperability between currencies.
As Fibold reported, the US Treasury Department also recommended strengthening collaboration between countries by unveiling the governance framework for global CBDCs.
The report’s findings align with recent growing interest in CBDCs that continue to occupy a significant portion of governments’ cryptocurrency regulatory frameworks.
With the ongoing cryptocurrency slump, some jurisdictions believe the deployment of CBDCs will be viable to counter private digital assets, thereby protecting consumers.
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