Even Central Banks Are Losing Faith in CBDCs (ft.com) 18
Central bank support for digital currencies appears to have fallen sharply, with only 13% of central bankers surveyed by OMFIF Digital Monetary Institute backing CBDCs as a cross-border payment solution, down from 31% in 2023.
The survey found just 10% of respondents are actively developing CBDCs, compared with 21% last year. The decline comes despite major initiatives including the Bank for International Settlements' Project Agora and China's Project mBridge. The BIS recently withdrew from mBridge, creating a potential split between Western and emerging market payment systems. Nearly half of surveyed bankers favor improving existing instant payment infrastructure over CBDCs.
The survey found just 10% of respondents are actively developing CBDCs, compared with 21% last year. The decline comes despite major initiatives including the Bank for International Settlements' Project Agora and China's Project mBridge. The BIS recently withdrew from mBridge, creating a potential split between Western and emerging market payment systems. Nearly half of surveyed bankers favor improving existing instant payment infrastructure over CBDCs.
Environmental Disaster (Score:2)
The central banks never liked digital currencies. Now they can dislike them because digital currencies are bad for the environment.
Re: (Score:2)
How are digital currencies "bad" for the environment?
If they are based on proof of work, the answer is obvious.
For the ones that aren't, they probably aren't, unless there is something stupidly inefficient about them.
Re: (Score:2)
CBDCs would work on a centralized ledger using a proof system similar to XRP. They won't use PoW.
Re: (Score:2)
"How are digital currencies "bad" for the environment?"
Because "mining" for such currencies (a la Bitcoin) requires large, high capacity data centers, with the attendant large power and water requirements.
Re: (Score:2)
You are assuming that digital currencies are mined. Most digital currency in the United States is in US Dollars. There is no "mining" involved in the creation of those dollars.
Re: (Score:2)
CBDCs are centralized and won't use a distributed proof system.
Also they're completely unfit for any purpose (Score:2)
Fallback Plan (Score:2)
I'm old enough to remember when Crowdstrike took out commerce for a day and people used cash to carry on with life.
Re: (Score:2)
That's why a centralized ledger system can be bad.
CBDC? (Score:4, Informative)
While there are context clues (Digital Currency and Central Bank), it doesn't hurt to assume a significant portion of the audience isn't familiar with a specific collection of letters. Putting the explanation in the article would be a good thing, especially as the article doesn't mention the DC's (Digital Currency) in question are not generic, but from/owned by the actual bank itself.
CBDCs? (Score:2)
Cannabidiol currency?
Re: (Score:2)
Central Bank Digital Currency.
A re-implementation of what already exists on a different and less efficient type of database.
Good (Score:2)
Nobody but cental banks and their control freak minions wanted CBDCs in the first place.