CBDC

People are increasingly relying on digital payments in their daily lives, a reality that has not gone unnoticed by the world’s central banks, which are scrambling to develop their own digital currencies. While CBDCs remain a nascent currency, the one thing that is clear is that their development is inevitable. We provide a sample of recent global efforts.

Summary: Central bank digital currencies (CBDCs) have been in the news for a while now. Yet, as some countries advance more dramatically on this front, misconceptions have sprung up regarding the progress, impact, and representation of a US digital dollar. We address some of these misconceptions and provide three steps to prepare for a US CBDC.

Cryptocurrencies have been around since 2009 and their popularity is growing. Not only are fintechs and neobanks providing these services to their customers, but so are community financial institutions. In a recent study, nearly 30% of community banks said they were very likely or extremely likely to add crypt services this year. Still, risks remain and regulatory guidance is evolving.