CBDCs can help improve counterparty credit risk for cross-border interbank payments and settlements

A jointly published report by the Canadian, U.K and Singapore Central Banks have favorable views of central bank digital currencies (CBDCs), stating that these products could improve counter-party credit risk for cross border inter-bank payments and settlements.

The report has outlined drawbacks in the traditional systems as well, including cyber-security issues, lack of transparency and high operational costs. Read more on the report here.

CBDCs have been gaining increased awareness since the rise in popularity of stablecoins, with banking institutes aiming to stay relevant in the payments processes.

Also read: Central Bank of Azerbaijan does not plan to issue a state-backed crypto because of the “great risks”

Source: https://www.cryptodigest.com/featured/canada-u-k-and-singapore-banks-in-favor-of-cbdcs/