Cryptocurrencies are forcing central banks to hasten roll-out of CBDCs

In a move designed to hurry the implementation of Central bank digital currencies (CBDCs), the Bank of International Settlements (BIS) is trialling the use of these digital currencies in Australia, Malaysia, Singapore, and South Africa. Will CBDCs be able to counter and decrease the exponential growth of cryptocurrencies? 

A feeling of consternation may well be being felt across the world’s central banks as cryptocurrencies are experiencing exponential growth, and none less so than at the central bank of central banks, the Bank of International Settlements. 

 According to an article on Bloomberg, the BIS will trial its CBDC with the four countries in a project code-named “Dunbar”. It is hoped by the bank that the project will lead to a more efficient global payment system. It will prototype the CBDCs in order to streamline them to reduce time and cost.  

Not only does the BIS have to contend with cryptocurrencies, but also with China’s two big online payment systems, Alipay, and WeChat Pay, plus the Facebook-backed Diem project, which also hopes to roll out its own stablecoin this year, in spite of a great deal of push-back from legislators and regulators. 

However, even if the BIS doesn’t openly admit it, the main threat to its CBDC project are cryptocurrencies. The Chinese online payment systems can, and probably will be, side-lined by the Chinese government, in order to let their own CBDC reign supreme, while the Diem stablecoin can also be quashed by the US legislative system. 

 This certainly isn’t the case with cryptocurrencies. They have been operating for years, and much infrastructure has already been built out. Adoption of these digital assets is either approaching the tipping point, or will do so during the current crypto bull market. 

 It can certainly be recognised that regulation may well have a dampening effect on the crypto market, however, it is only a matter of time before people wake up to the debasement of every fiat currency across the globe, and to the fact that CBDCs will be used to control populations. 

 Freedom is only gained by moving out of the banking system into assets that are outside of it. Assets that government will not be able to steal from you, as they currently do through inflating the fiat monetary system. 

 Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.