Skip to main content
Skip to footer

Sathish Narayanan

Business Analyst, BFSI

Highlights

  • Central banks around the world are exploring ways to issue a ‘digital’ legal tender of their currencies in the form of central bank digital currencies (CBDCs). 
  • In capital markets, CBDCs can bring a host of benefits such as reduced transaction and settlement costs, ease of compliance, and real-time issuance of securities.
  • However, CBDC implementation will have to pass through several obstacles related to regulation, acceptance from market participants, and user privacy. These impediments can be overcome through global partnerships and common implementation frameworks among central banks.