Banks Race to Accelerate Adoption of Fiat-Backed Crypto

Asia Blockchain Review
January 18, 2020

Central and regional banks are seeking ways to adopt fiat-backed cryptocurrency that will help facilitate cross-border transactions and payment systems.

Higher Interest for Central Bank Digital Currencies

As reported by Computer World, a recent report from accounting services provider KPMG revealed central and regional banks across different parts of the world are carrying out projects to develop blockchain-enabled central bank digital currencies (CBDC) that could potentially boost international trade.

Arun Ghosh, U.S. Blockchain Leader at KPMG, wrote in a blog post that the firm is looking to help its clients seek ways to adopt blockchain technology and cryptocurrency.

“In 2020, we at KPMG expect to assist regional and central banks in the development of well-defined technology frameworks that can anchor private-sector initiatives,” Ghosh wrote.

Dong He, deputy director of the IMF’s Monetary and Capital Markets Department, also revealed that fiat-backed cryptocurrencies has many advantages, such as the fact that crypto asset transactions can be cleared and settled without relying on an intermediary.

“The advantages are especially apparent in cross-border payments, which are costly, cumbersome, and opaque,” he said. “New services using distributed ledger technology and crypto assets have slashed the time it takes for cross-border payments to reach their destination from days to seconds by bypassing correspondent banking networks.”

Bank of England Researches Advantages of Crypto

Meanwhile, the Bank of England has published papers detailing the monetary policy and financial system implications of issuing CDBCs.

“If a central bank issued a digital currency, then everyone (including businesses, households and financial institutions other than banks) could store value and make payments in electronic central bank money,” the Bank stated. 

“While this may seem like a small change, it could have wide-ranging implications for monetary policy and financial stability.”

Source: https://www.computerworld.com


About Asia Blockchain Review

Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. It aims to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.

Our goal is to cultivate and encourage a collaborative community for our members to gather, share their experiences and endeavors in the blockchain space, and brainstorm the potential uses of blockchain technology.

Follow Asia Blockchain Review on:

    Related Article
    A Contextual Review of JP Morgan’s Blockchain Report (Part 3 of 3)
    In this third and final chapter of our three-part series review of JP Morgan’s report, Asia Blockcha...

    April 1, 2020

    Democratizing the World with Blockchain
    Blockchain may prove to be the missing piece in the noble agenda of reverting political power to the...

    March 31, 2020

    Food Traceability Through Blockchain: Harumanis Mangoes
    ABR is going to explore deeper into the traceability of the food industry through Blockchain technol...

    March 25, 2020

    To Quarantine or Not to Quarantine: The GPS Mobile Solution
    Indeed mobile GPS tracking has proven itself to be the prime technological tool for humanity in our ...

    March 19, 2020

    We provide information about Asia Blockchain Review latest activities as well as global blockchain news and research. Subscribe to our Newsletter now or Contact us