Breaking: BIS Head Warnings About CBDCs and Exercises Hope on Crypto

Cecilia Skingsley, the new head of the Bank for International Settlements Innovation Hub, stated Monday that central bank digital currencies will never be fully interconnected due to cross-border limitations.
Skingsley notes the crypto market recovery in 2023 despite last years turmoil such as the collapse crypto exchange FTX. He hopes that the industry will learn from these failures.


BIS warns about CBDC’s limitations
Cecilia Skingsley is the head of BIS Innovation hub. She warned that central bank efforts to push for central banks digital currencies will be met with geopolitical limitations, according to Reuters on February 6.
Skingsley pointed out that the crypto market recovery is pushing crypto markets higher and increasing investor sentiment about cryptocurrencies. Despite last year’s turmoil the crypto market has survived. After the turmoil, she believes that a new outlook has emerged on CBDC and crypto market.
“I believe the industry will learn from these mistakes and come up with new ideas.”
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Cecilia Skingsley agrees with the fact that CBDCs make currencies more technologically advanced, easier to send and cheaper to other countries. It will however divide countries based upon their CBDC. Not all countries will be willing to cooperate fully with the rest of the world. Due to cross-border restrictions, CBDCs will not be interconnected.
She suggested that some CBDCs are not being accepted, while Andrew Bailey, Bank of England chief, raised doubts about whether CBDCs will be accepted in other countries.
“That raises the question of how to maintain public policy objectives we believe are important, namely trust in our money system.
Crypto is the Key


Although 11 countries have already established a CBDC, and more than 100 countries are exploring them further, crypto is likely to be the only way to transborder payment. This move comes as physical cash usage falls worldwide and authorities seek to protect their money-printing power from threats like Bitcoin and ‘Big Tech.
The resilience of the crypto market is evident in the Bitcoin price increase of more than 40% over the last month. Bitcoin is currently trading at $22,879 and has fallen more than 1% in the past 24 hours, just ahead of Jerome Powell’s speech by the U.S. Fed Chair.
Also read: Binance Supports Terra Classic Upgrade (LUNC), Will It Start A Bull Run

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