Future of Money Report

A report titled “Future of Money” by venture capital firm Blume Ventures suggests that Central Bank Digital Currencies (CBDCs) have the potential to replace physical cash in the coming decade. The report predicts a significant acceleration in CBDC adoption and startup activity over the next 6-18 months, both in business-to-business and business-to-consumer scenarios. It also highlights that 114 countries, representing over 95% of global GDP, are exploring CBDCs, with 60 countries in advanced stages of development, pilot projects, or launches. India, for instance, initiated a CBDC pilot in December 2022.

According to the report, what potential impact could Central Bank Digital Currencies (CBDCs) have on financial inclusion?

The report suggests that CBDCs have the capacity to enhance financial inclusion by providing a secure and affordable means of conducting transactions, especially for individuals without access to traditional banking services.

What is the expected timeline for the acceleration of CBDC adoption mentioned in the report?

The report anticipates significant acceleration in CBDC adoption and startup activity over the next 6-18 months.

What distinguishes CBDCs from traditional digital money, according to the report?

The report mentions that CBDCs go beyond traditional digital money offered by commercial banks and are being developed in collaboration with international bodies such as the Bank for International Settlements (BIS) and the International Monetary Fund (IMF).

Month: Current Affairs - September, 2023

Category: Economy & Banking Current Affairs