Mastercard’s blockchain and digital assets lead for Asia-Pacific, Ashok Venkateswaran, recently expressed his skepticism about the widespread adoption of central bank digital currencies. In a shocking turn of events, he claimed that there isn’t enough justification for the use of CBDCs at this time. I know what you’re thinking – how can something as exciting as CBDCs not be all the rage right now? It’s truly mind-boggling.
Venkateswaran pointed out that one of the main issues with CBDCs is their adoption. He argued that if people are going to carry around these fancy new digital currencies in their wallets, they should be able to spend them anywhere just like regular old cash – revolutionary concept, I know.
For those who are unfamiliar with retail CBDCs (not to worry, we had no idea either), they are essentially the digital form of fiat currency issued by a central bank. They cater to individuals and businesses and facilitate everyday transactions. On the other hand, wholesale CBDCs are exclusively used by central banks and financial institutions for large-value interbank transactions because why have only one type when you can have two?
The International Monetary Fund has described CBDCs as “a safe and low-cost alternative” to cash – which is great news because carrying around wads of cash everywhere can get quite tiresome after a while. Apparently 60% of countries in the world are exploring these magical things called “CBDCs,” but only 11 countries have actually adopted them so far… talk about FOMO.
But wait! There’s more! According to data from some organization called The Atlantic Council (no relation to Atlantis), an additional 53 countries are in advanced planning stages for adopting CBDCs while another 46 countries are busy researching this groundbreaking topic. So basically everyone wants in on it but nobody really knows what they’re doing yet – classic case of keeping up with Joneses.
Now here comes our hero Venkateswaran again claiming that consumers love using traditional money so much that there simply isn’t enough justification for having a shiny new CBDC – thank goodness we’ve got him looking out for us!
In an attempt to prove themselves wrong (or maybe right?), Mastercard announced last week that they’ve completed testing their solution in Hong Kong Monetary Authority’s e-HKD pilot program where they simulated using retail CBD such as electronic Hong Kong dollars – talk about putting your money where your mouth is!
A total of 16 companies across various sectors including financial payments participated in this pilot program proving once again how many cooks it takes to spoil one broth – or was it too many chefs spoiling one soup? Either way someone’s cooking something eventually goes bad…
To add fuel into fire Visa also took part alongside HSBC Bank and Hang Seng Bank testing tokenized deposits making us wonder whether these guys were trying make crypto-currency tradingSponsored Product sound like child play or if its just me missing point somewhere along line?
And then Venkateswaran dropped another bombshell saying Singapore doesn’t need retail CBD due its efficient payment system which surprised absolutely no-one since Singaporeans aren’t known taking risks unless strictly necessary – nothing says fun like playing it safe!
Last year IMF’s Bo Li named Singapore & Thailand quick progress connecting fast payment systems lowering transaction fees cross-border payments leaving rest world wondering why couldn’t anyone else come up brilliant ideas first- oh well better late than never…right?
In conclusion: Central banks may want adopt wholesale CBD instead investing both time effort building infrastructure support wide-spread use seems kind pointless endeavor considering general public still prefers good ol’ greenbacks over fancy schmancy new-fangled stuff any day week month year decade century etc…and besides wouldn’t hurt take little break from all hustle bustle modern life occasionally go back basics every once awhile ya know?
