Survey: IBM and think tank find central banks support digital currency, but have concerns

IBM and a think tank surveyed 21 central banks over several months and found that 38% of them are already running trials around a digital central bank currency -- a crypto for the banks that support banks. The report finds that such a currency "may lead to significant improvements in efficiency, speed and resilience, as well as lower the cost and complexity associated with existing payments systems." A majority of the banks that responded "believe a wholesale [central bank currency] should be issued by the central bank. This removes credit risk and ensures stability of the token’s value. Liquidity risk is removed as the central bank can issue more tokens."

Still there were concerns, with 50% of respondents hoping that such a currency would be designed in concert with the private sector. And to date, trials have demonstrated that "blockchain systems must improve before they can overcome issues of scalability and speed." If banks do move forward with this idea, a fiat-backed digital currency token is the most likely result, given that existing regulatory frameworks in most nations should be sufficient to allow such a creation. (Source: IBM)