Bank AI

Citibank explores the potential of Central Bank Digital Currencies (CBDCs) to revamp securities settlements based on securities firms survey.&nbsp; 
CBDCs are digital currencies backed by national central banks, and have caught Citibank's attention due to their promise for quicker and more efficient settlements for securities firms. 
With securities transactions being a critical pillar of the global financial system, any improvement in settlement speed can have profound implications. CBDCs can potentially minimise delays, reduce costs, and mitigate the risks associated with traditional settlement methods.&nbsp; 
Citibank recognises the potential of CBDCs to transform not just securities but other facets of banking as well. Its move resonates with a broader trend where financial institutions globally are turning their attention to digital currencies, particularly CBDCs, to streamline operations and enhance customer experiences. 
However, while the prospects of CBDCs are promising, their full-scale implementation in securities settlements demands meticulous planning. Ensuring interoperability with existing systems, regulatory harmony, and the technological infrastructure to support vast transaction volumes are some areas that require thorough attention. Opinion 
The Citibank survey highlights some of the perceived advantages of a central bank being able to wield its own central bank digital currency (CBDC). Of course, what wouldn’t be a quicker settlement process than what already exists? 
The survey findings point to institutions turning to CBDCs as well as other digital currencies in order to improve their overall capabilities. However, the key with alternative digital currencies will be whether institutions will be allowed a choice. 
Global financial bodies and regulatory agencies are at last acknowledging the innovations brought to finance by cryptocurrencies, but this is always overshadowed by their perceived ‘risks’ to the financial and banking system. 
It needs to be made very clear. The only chance for the existing system, at least as far as governments and central banks are concerned, is a widespread implementation of CBDCs. Only with this kind of control will central banks be able to impose any kind of financial stricture they desire upon the citizenry.&nbsp; 
The total control this would bestow to a central bank would allow it to ‘switch off’ from the system any individuals who do not follow the bank’s rules. 
Many who might see this would perhaps think that this is a fantastical and dystopian future that can only be read about in science fiction books. Nevertheless, it can be seen that China has a social credit system already in place that allows the government to blacklist and punish individuals who do not toe the line. 
Given the unbelievably disastrous state of all fiat-based economies across the world, total control of finances by governments and their central banks must be put in place to extract the last wealth of the people in order to prolong the fiat monetary system. 
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Citibank report touts CBDCs but ignores control concerns

Crypto Daily™

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