Central Bank digital currencies to replace cash in the coming decade: report
Central bank digital currencies (CBDCs) have the potential to replace cash in the coming decade, according to a report by venture capital firm Blume Ventures shared with ET.
The report, titled ‘Future of Money’, said CBDCs have the capacity to boost financial inclusion by offering a safe and affordable means of making transactions for people with no access to traditional banking services.
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Offering CollegeCourseWebsiteIndian School of BusinessISB Product ManagementVisitIndian School of BusinessISB Digital TransformationVisitIIM LucknowIIML Executive Programme in Data ScienceVisitNorthwestern UniversityKellogg Post Graduate Certificate in Product ManagementVisitCBDCs are issued by central banks and their value is linked to the official currency of the issuing country.
“We anticipate significant acceleration to CBDC over the next 6-18 months in terms of startup activity and adoption at business to business and business to consumer levels over another 6-18 months,” Ashish Fafadia, managing partner, Blume Ventures, told ET.
The report said 114 countries, representing over 95% of global GDP, are now exploring CBDCs, a significant jump from 35 countries in May 2020. The research indicates that 60 countries are in an advanced phase of exploration, encompassing development, pilot or launches. India initiated the CBDC pilot in December 2022.
“Central banks are working with Bank for International Settlements (BIS), International Monetary Fund (IMF) and other industry bodies to come up with CBDC which is just not a digital-native version of traditional notes and coins but goes beyond the current digital money which is commercial bank money,” said the report.
It said CBDCs also
