Mastercard says wide adoption of central bank digital currencies would be ‘difficult’ right now
Publishing timestamp: 2023-11-17 01:40:09
Summary
Mastercard's blockchain and digital assets lead for Asia-Pacific, Ashok Venkateswaran, stated that there isn't enough justification for widespread use of central bank digital currencies (CBDCs) at the moment, making adoption difficult. He mentioned that if a country's domestic payment network is not robust, it may make sense to have a CBDC. Venkateswaran also highlighted the difference between retail CBDCs, which cater to individuals and businesses, and wholesale CBDCs, which are used by central banks and financial institutions for large-value interbank transactions. The International Monetary Fund has stated that CBDCs are a safe and low-cost alternative to cash, with many countries exploring the concept. However, building the necessary infrastructure takes time and effort. Venkateswaran emphasized that consumers are comfortable using traditional forms of money, so there isn't enough justification for CBDCs. He cited Singapore as an example where the case for retail CBDCs is not compelling, but there is a case for wholesale CBDCs for interbank settlements. Singapore's central bank recently announced that it will be piloting the issuance and use of wholesale CBDCs from 2024. Ultimately, the need for CBDCs depends on the specific problems a country is trying to solve, and it may make sense for countries with
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Keywords: banks, hsbc holdings plc, technology, central banking, internet, asia economy, business news, mastercard inc, breaking news: technology, hang seng bank ltd,
Source: https://www.cnbc.com/2023/11/17/mastercard-says-wide-adoption-of-cbdcs-is-difficult.html