After sharing similar lines of action, the future of the financial system of the United States and Europe seems to be taking divergent paths starting in 2024. Well, while the North American country sets its eye on the development of the Cryptocurrency industry, the The European Union is advancing in the development of a central bank digital currency (CBDC).
The European Central Bank (ECB) published its second situation report on December 2 on the preparation phase of the digital eurothe CBDC that the European Commission plans to launch.
The idea in this phase, according to explains the ECB statementis to carry out a series of research and experimentation activities with users to collect information about your preferences. The data will inform decision-making on the CBDC later next year.
The digital euro project is a European initiative that is being developed for the benefit of millions of citizens throughout the euro area. Engaging with external stakeholders, from policymakers and market participants to the general public, is a key priority for 2025.
European Central Bank.
To achieve this objective, the ECB ensures that it is working with experts from the national central banks of the Eurosystem and national authorities in order to develop a methodology that allows setting limits on holding digital euros.
The objective is to balance the user experience with the implications that the CBDC would have in monetary policy and financial stability of the region. A concern that focuses on the possible negative repercussions of this type of currency, which has caused a decrease in interest in CBDCs from most central banks globally.
Banks no longer focus on CBDCs
As the most recent report from the Official Monetary and Financial Institutions Forum (OMFIF) points out, only 13% of central banks believes that CBDC networks are the most promising approach for the future of global payments. A percentage in which very few banks enter, including the ECB.
This percentage also represents a significant drop in interest, compared to 2023, when the willingness to launch CBDC was 31%, as reflected in the results of the survey on the future of payments carried out by OMFIF. They are data that agree with what is stated the latest technical report published by Citigroup, which included a survey of almost 500 institutions banking.
The majority of institutions surveyed for the Citibank study do not plan to use CBDC for the digitalization of their operations. Source: Citibank Report.
On this topic, the difficulties in creating a cross-border CBDC network are highlighted as one of the main obstacles to overcome. There is growing fear that they will be used by countries like Russia Bitcoin-terreno/”>to evade healing.
Hence the importance that 47% of those surveyed gave it. to instant payment systems, as the most promising way to improve cross-border payments. Among them, FedNow stands out, was released in the United States this year.
At this point, banks expressed enthusiasm for initiatives such as the Bank for International Settlements (BIS) Project Nexus, focused on fast payments, as a mechanism to modernize financial infrastructure.
The emphasis also put into asset tokenizationsince more than 40% of the central banks surveyed think that it is the most promising option. They hope to start working on it in the next three to five years.
It is thus observed that this decreasing interest in CBDCs, and the preference for instant payment networks and tokenization, leads central banks to prioritize more pragmatic solutions for cross-border transactionss. A path that could end up converging with the cryptocurrency ecosystem and the panorama that is opening up in the United States with Donald Trump’s new pro-bitcoin government.
Regarding this, consulting firms such as McKinsey they estimate that the total capitalization of the tokenized market could reach around 2 billion dollars by 2030. As CriptoNoticias has reported, interest in tokenization of funds It is a trend that is constantly rising, along with the appetite of traditional investors for assets like bitcoin.
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