Discussions around Facebook‘s Libra seem to have dialed down a bit lately. However, all the attention that was once given to Libra seems to have extended to Central Bank Digital Currencies (CBDCs) now.
A recent research report had revealed that at least 18 central banks are currently developing digital currencies. In fact, China’s central bank recently filed 84 patents related to its plans to launch a digital currency – the DCEP. Following China’s lead, many other economies of the world have now joined the race to launch their own digital currencies.
On a recent podcast, Phil Dettwiler, Head of Custody Storage and Transaction Banking at SEBA Bank AG, was of the opinion that most of these countries that are launching CBDCs are giving in to the fear that CBDCs will be a roadblock towards framing a sound monetary policy.
While on the same topic, he was also asked whether Facebook’s Libra would ever be a threat to the traditional banking system. In response, Dettwiler said that the chances for the same are not negligible.
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