The new report by the accounting firm KPMG said that the central banks of Europe and Asia are in the final stages of launching cryptocurrencies as cross-border transactions and payment systems of the future. Authorities from around the world regard this as a competitive advantage in world trade.
According to Arun Ghosh, in 2020, KPMG plans to help central and other regional banks begin to develop a technological structure that can strengthen private sector initiatives. In turn, the International Monetary Fund-supported cryptocurrencies and stated that it would provide an opportunity to reduce dependence on government money.
Deputy director of the Monetary and Capital Markets Department at IMF, Dong He, said that the benefits of this are evident especially with international payments because they are expensive and opaque. Thus, new opportunities using blockchain technology and crypto tokens will significantly reduce the time it takes for cross-border payments to the destination in one click. The IMF said on its blog that today’s paper currencies are constantly changing and in the future, innovations will change the banking and currency environment.
It is also reported that China is almost ready to release its own crypto coin and it may challenge the US dollar as the actual currency for international trade. Other countries, such as Sweden, are planning to create their own state-sponsored cryptocurrency.
However, the Bank of England, which has been studying cryptocurrency since 2015, currently does not plan to develop a cryptocurrency that is associated with the pound.
Also, an extensive study has been published about the financial system, monetary policy, and the implications of CDBC. An analysis of the Bank of England states that if the central bank issues its crypto coin, then everyone, including enterprises, households, and financial institutions, can save the value and make it possible to make payments with electronic funds from the central bank. Such changes can have serious implications for financial stability and monetary policy.
According to Arun Ghosh, despite any actions by central banks, the private sector is already making stable coins, which are made on the basis of decrees to support better settlements within organizations and through banking networks and the exchange of values.
Today, more than half a dozen universities are already developing a payment system that can compete with modern clearing and settlement networks. In addition to the large-scale implementation of digital assets supported by the public sector, Ghosh also predicts that four more cryptocurrencies may appear next year. As business leaders apply a new level of innovation, improve revenue models and use the permanent blockchain of tokenized assets.
The introduction trends of crypto include:
- Achievements in the field of cryptocurrencies both in possession and in the place of storage, protection, transfer, and access to digital assets in a decentralized environment.
- The transition from private permitted to compatible blockchain implementations. As a result of this approach, the next step will be interaction.
- Success in scaling technology using a converged artificial intelligence frame and better results in initializing your investment in this.
- The convergence of artificial intelligence. Blockchain and the Internet can help manage climate change.
Arun Ghosh also said in his latest forecast that decentralized projects supported by the blockchain using advanced analytical methods and can become visible and useful to countries and regulatory bodies that monitor and report carbon emissions, sea-level rise, and toxic waste disposal.
Everything is done for the better, innovation and development do not stand still and crypto is now part of the global financial system. Now it’s hard to say when the cryptocurrencies of some countries will be ready to launch or whether this idea has significant shortcomings, but we will closely monitor the news to keep you informed of all the information.