“BIS: CBDC and DLT combo outperforms correspondent banking system”
(Website Finextra, 28 September 2021).
CBDC remains a hot topic, especially at central banks and their own bank, the BIS. BIS previously investigated the possibility of cross-border use of CBDCs (zie blog 11 June), now it claims even higher expectations. Digital money in combination with distributed ledger technology beats regular correspondent banking.
This claim is not completely new, we have also heard this from Ripple. We have seen, however, that the banks, together with SWIFT, have taken the necessary initiatives, which have resulted in better performances, which was more or less already in place. This does not mean that the developments at the BIS, and therefore central banks, can also be easily countered by the commercial banks. It does mean, however, that the trend towards faster and cheaper will have to be maintained for years to come.
Read the publication on the website of Finextra
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