Cryptocurrencies have stimulated innovation within the payments system, prompting financial service providers to modernize, and digital central bank currencies are one such innovation.
According to Carlos Leon, Director of Financial Market Infrastructures and Cryptocurrency Solutions at Financial Network Analytics Technology Company FNA.
“Central and commercial banks have been dormant for the last 60 years and the last big advance was the credit card and that was an invention in the 1960s,” he says.
digital money
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What shape will digital money take in the future?
Among cryptocurrencies, stablecoins, and central bank digital currencies , which digital currency will become widespread? “It is more about coexistence,” says Lyon, who believes there will be no single survivor in the crypto space.
Instead there will be a complex system of interoperable payment systems. “What we’re all doing right now is trying to understand how different systems are interconnected, how people pay each other, and looking at the integrity and efficiency of the network topology,” he says.
What about criticism?
Many might view physical money as old-fashioned and dirty, but it serves a purpose for the system when the card and payment systems are down, for example.
Is it really the end of the Bitcoin winter?
Leon says that some features of cash are retained in central bank digital currencies, such as anonymization of small payments, large payments may need proof of identity as banks have to maintain anti-money laundering and security features.
