CBDC

Central banks are working to make CBDCs and stablecoins a reality. From access to transparency and security measures to technology issues, we review the benefits and the challenges that CBDCs pose.

People are increasingly relying on digital payments in their daily lives, a reality that has not gone unnoticed by the world’s central banks, which are scrambling to develop their own digital currencies. While CBDCs remain a nascent currency, the one thing that is clear is that their development is inevitable. We provide a sample of recent global efforts.

Summary: Central bank digital currencies (CBDCs) have been in the news for a while now. Yet, as some countries advance more dramatically on this front, misconceptions have sprung up regarding the progress, impact, and representation of a US digital dollar. We address some of these misconceptions and provide three steps to prepare for a US CBDC.

Cryptocurrencies have been around since 2009 and their popularity is growing. Not only are fintechs and neobanks providing these services to their customers, but so are community financial institutions. In a recent study, nearly 30% of community banks said they were very likely or extremely likely to add crypt services this year. Still, risks remain and regulatory guidance is evolving.