Larry

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Nexus

NASDEX

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    <h4><strong>A recent <a href="https://www.omfif.org/future-of-payments-2024/" target="_blank" rel="noopener noreferrer nofollow">OMFIF survey</a> shows central banks are focusing on improving cross-border payments. They are doing this by using existing systems like the US FedNow.</strong></h4>
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<p>Nearly half (47%) of the central banks surveyed prefer these solutions, a slight increase from last year.</p>
<h5><strong>CBDCs Lose Favor as Central Banks Turn to Stablecoins and Tokenization</strong></h5>
<p>In contrast, CBDCs have fallen out of favor. In 2023, 31% of central banks showed interest in CBDCs, but that number dropped to just 13% in 2024. This shift comes as central banks reconsider their interest in blockchain-based solutions.</p>
<p>The survey also highlights the growing importance of <a href="https://www.altcoinbuzz.io/?s=stablecoins" target="_blank" rel="noopener noreferrer nofollow">stablecoins</a> and <a href="https://www.altcoinbuzz.io/?s=tokenization" target="_blank" rel="noopener noreferrer nofollow">tokenization</a> in the future of payments. However, stablecoins received zero votes in the survey, indicating they still have little support among central banks. The Bank for International Settlements (BIS) recently pulled out of a project called mBridge, which was exploring the use of CBDCs for cross-border payments. This move was seen as a response to concerns over geopolitical issues, but the BIS denied any political reasons behind it.</p>
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 <p dir="ltr" lang="en">With projects InthanonLionRock2, Jura, Dunbar and mBridge, the <a href="https://twitter.com/hashtag/BISInnovationHub?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#BISInnovationHub</a> is leading practical experiments to show how <a href="https://twitter.com/hashtag/CBDCs?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#CBDCs</a> could make cross-border payments faster, cheaper and more transparent. A new report connects the dots on these experiences: <a href="https://t.co/IDp0bKtejP" rel="noopener noreferrer nofollow">https://t.co/IDp0bKtejP</a> <a href="https://t.co/JtSih8QkvC" rel="noopener noreferrer nofollow">pic.twitter.com/JtSih8QkvC</a></p>
 <p>— Bank for International Settlements (@BIS_org) <a href="https://twitter.com/BIS_org/status/1539224124920414208?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">June 21, 2022</a></p>
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<p>Even with this, the US dollar remains the dominant currency for international payments. Only 11% of central banks are reducing their use of the dollar. This continues to be seen as a haven amidst global uncertainties.</p>
<h5><strong>Tokenization Gains Traction, But Traditional Payment Systems Remain Key</strong></h5>
<p>While the traditional correspondent banking system is facing challenges, such as rising costs due to stricter regulations, tokenization is gaining interest. Tokenization refers to the process of turning assets into digital tokens, making it easier to track and transfer. Over 40% of central banks in developed countries see promise in tokenization and plan to explore it further in the next few years.</p>
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 <p dir="ltr" lang="en">BlackRock’s CEO Larry Fink predicts tokenization of financial assets as the next ETF revolution step, enabling instant settlements, lower costs, customized strategies, and transparent voting.<a href="https://twitter.com/search?q=%24nsdx&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$nsdx</a> <a href="https://t.co/JOlYhLgZoh" rel="noopener noreferrer nofollow">pic.twitter.com/JOlYhLgZoh</a></p>
 <p>— NASDEX (@nasdex_xyz) <a href="https://twitter.com/nasdex_xyz/status/1858329759685714234?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">November 18, 2024</a></p>
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<p>Despite this interest in blockchain and tokenization, the survey suggests that cross-border payments will likely continue to rely on traditional payment systems for the time being. The <a href="https://x.com/NexusLabs/status/1800324588116860933" target="_blank" rel="noopener noreferrer nofollow">BIS’s Project Nexus</a> is working on a platform that will connect different instant payment systems, further cementing the role of legacy systems in international transactions.</p>
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<p><strong>Disclaimer</strong></p>
<p>The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted risk tolerance levels of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses you may incur due to any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.</p>
<p>The post <a href="https://www.altcoinbuzz.io/cryptocurrency-news/central-banks-favor-traditional-payment-systems-over-cbdcs/" rel="noopener noreferrer nofollow">Central Banks Favor Traditional Payment Systems Over CBDCs</a> appeared first on <a href="https://www.altcoinbuzz.io" rel="noopener noreferrer nofollow">Altcoin Buzz</a>.</p>

Central Banks Favor Traditional Payment Systems Over CBDCs

Altcoin Buzz

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