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ECB report: CBDC is more suitable for cross-border payments than Bitcoin and stablecoins

2022-08-03 18:32:27Sina Finance-Blockchain

August 3 news, the European Central Bank (ECB) said in a study released on Monday that the central bank digital currency (CBDC) may be the "holy grail" of cross-border payments.Likely to outperform any other option on the market — including Bitcoin and stablecoins.With stablecoins occupying an intermediary position, Bitcoin is the worst choice for improving the efficiency of cross-border payments.The study said that the central bank's digital currency and domestic instant payment systems have the greatest potential in reducing cross-border transaction costs and instant transactions, adding that Bitcoin cannot solve the challenge of cross-border payments, which is caused by its inefficient proof-of-work consensus mechanism,Features such as high volatility and use by criminals.On the other hand, as far as stablecoins are concerned, in addition to concerns about their illicit use, regulators are concerned that it poses risks to monetary sovereignty and financial stability, according to the study.The study also noted that central banks developing CBDCs should discuss interoperability issues at an early stage to ensure the efficiency of cross-border transactions.(Forkast)

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