- BIS Innovations head, Cecilia Skingsley says the crypto industry will learn from recent failures and develop new things.
- Skingsley expects the new wave of CBDCs to face geographical limitations.
- Increased global CBDC interest is believed to be due to the dwindling use of physical cash worldwide.
According to reports, the new head of the Bank of International Settlements (BIS) Innovation Board, Cecilia Skingsley, has predicted that the crypto industry will learn from recent failures and develop new things.
The new BIS innovation head believes that the cryptocurrency market will emerge strongly from last year’s turmoil. She also believes that the new wave of central bank digital currencies (CBDC) that are showing up will face geographical limitations.
The BIS is famous for being critical of cryptocurrencies, likening Bitcoin to a Ponzi scheme and a bubble. Last year’s multiple challenges appeared to justify this criticism, with the likes of FTX, Celcius, and 3AC leading a trend that did not go down well with the cryptocurrency market. Altogether, over $2 trillion vanished due to the failed projects.
The report explained that Skingsley noted that the challenges that rocked the crypto market did not affect the CBDC development plans of central banks. She shared knowledge of the continued push towards realizing CBDC projects by the banks that plan to do so.
Across the world, eleven CBDCs have already been launched by various central banks, with over 100 other entities working towards realizing theirs. Reuters report notes that these banks, representing 95% of the global GDP, are actively exploring the actualization of their CBDC projects, with significant milestones set for this year.
China, known for leading the CBDC actualization race, is reportedly targeting expanding its pilot program to most of its 1.4 billion population. Other institutions expected to be targeting significant steps this year include the European Central Bank, the U.S. Federal Reserve, and the national banks of Australia, Britain, Brazil, India, South Korea, and Russia.
The report attributed this increased interest to the dwindling use of physical cash worldwide. With such development comes the threat from Bitcoin and big tech firms.
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