tl;dr
:Banking giant Morgan Stanley predicts that central bank digital currencies (CBDCs) could lead to a decreased reliance on the US dollar for cross-border payments. The executive director and head of digital asset markets at the bank, Andrew Peel, believes that CBDCs have the potential to establish a ...
Banking giant Morgan Stanley predicts that central bank digital currencies (CBDCs) could lead to a decreased reliance on the US dollar for cross-border payments. The executive director and head of digital asset markets at the bank, Andrew Peel, believes that CBDCs have the potential to establish a unified standard for cross-border payments and enable significant innovation in financial services. Additionally, the bank suggests that US-dollar-pegged stablecoins may have a profound impact on the global financial sector, potentially reshaping the way money is moved across borders.
In a new research note, Andrew Peel, executive director and head of digital asset markets at the bank, states that CBDCs are capable of creating a new standard for cross-border payments, reducing the need for the dollar and traditional payment structures. As CBDCs become more widely adopted and technologically advanced, they hold the potential to establish a unified standard for cross-border payments, which could diminish the reliance on traditional intermediaries like SWIFT and the use of dominant currencies such as the dollar. Furthermore, CBDCs can enable significant innovation in financial services, such as the use of smart contracts for automating payments, making the concept of programmable money a practical reality. Peel also suggests that stablecoins may be crypto’s “killer app,” potentially altering the landscape of global finance and reinforcing the dollar as the dominant global currency in the process.
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