Stakeholders Against The Idea Of A CBDC, Blockdata Report

A recent report from blockchain analysis firm Blockdata detailed why many private stakeholders oppose the notion of a CBDC.

The report, titled “The State of CBDCs in 2022,” delves into the year’s most notable CBDC developments. It also identified some of the primary reasons why some private stakeholders are opposed to CBDCs.

The report highlighted the American Banking Association’s (ABA) position on CBDCs. According to the ABA, a CBDC issued by the US Federal Reserve would rewire the banking system and lack compelling use cases.

Furthermore, the ABA emphasized that issuing a CBDC will result in a substantial fundamental shift in the Fed’s obligations and advised that the issuance of digital currencies be left to the private sector.

It underlined that digital currency issuance could be preferable if left to the private sector and allowed to develop with governmental clearances, citing stablecoin issuer Circle’s view on CBDCs.

Stakeholders are also worried about anonymity and privacy, interoperability, scalability, technological structure, and the balance between design and central bank policy, according to the report.

Meanwhile, some countries, such as Indonesia, recently said that its central bank plans to make its CBDC the only legal tender in the country. Nigeria is also promoting the country’s use of CBDCs amid a dramatic drop in eNaira usage.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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