Cecilia Skinsley, the new head of the Bank for International Settlements (BIS), denounced the lack of interconnection that will come with the proliferation of central bank digital currencies (CBDCs).
Skinsley believes that CBDCs are a good gateway for seamless transactions, but would face geographic limitations because not all countries are ready to cooperate with others.
Remember that CBDCs became a venture of choice for second-tier banks due to the global drop in physical cash and the need for centralized authorities to maintain their money-printing powers in the face of a potential “threat” like bitcoin.
While 11 countries have officially created a CBDC, more than 100 are exploring their applications.
Skinsley is one of many concerned parties with mixed feelings about CBDC. On January 17, Bank of England Governor Andrew Bailey also questioned the need for the digital pound project.
Skinsley sees crypto as the ‘key’
Due to its strong underlying blockchain infrastructure, Cecilia Skingsley sees cryptocurrencies as a better alternative for facilitating cross-border transactions.
Bitcoin, the benchmark of cryptocurrencies, has seen a 40% rise in the past month, and apparent signs of a potential market recovery buoy investor sentiment despite the harsh winter of 2022 and the FTX debacle.
In a January 2, 2023 tweet, Tim Draper, longtime Bitcoin supporter, venture capitalist, and decentralized finance (DeFi) supporter, discussed his oft-repeated forecast that the price of Bitcoin would hit $250,000. in 2023.
Meanwhile, bitcoin is currently trading at $22,879, down 1% from its previous mark of $23,952 over the past 24 hours.
