Central Bank Digital Currencies (CBDC) are coming. When will they be here? Very soon, the Dutch bank ING has recently affirmed.
According to a recent announcement, the bank’s chief economist Mark Cliffe and the lead economist of digital finances Teunis Brosens affirmed that we may see the next central bank-based digital currency in around five years. According to Cliffe, CBDCs would enable people to get rid of cash completely.
One of the reasons why Cliffe expects the new coins to be launched so soon is because in his view the current financial system is pretty outdated. According to him, it is an expensive system that takes a lot of time and that could work better.
The blockchain technology could easily be used to create a system that would be faster and cheaper. This would be a huge leap forward for the financial world, so there is no reason why central banks are going to ignore this. Cliffe also believes that this may be interesting for the banks because it will open up more options for them to support economic activities.
However, not everybody seems to agree on this date. Priscilla Toffano, an economist from the International Monetary Fund (IMF), has affirmed that the project is still years away and that we will hardly see any product like this launched anytime soon.
Another interesting aspect of these tokens is that it is pretty easy for them to become adversaries to the dreaded global stablecoins such as Libra, which is giving the regulators chills.
It is certain that the first central bank to issue a CBDC will definitely be very important for the development of the market, so most major nations are rushing to be the first.