Shyam Nagarajan shared his personal opinion on the CBDC’s development & adoption and said that CBDC is future money.
The International Business Machines Corporation (IBM) is an American multinational tech corporation. This company is headquartered in Armonk, New York. The operations of this company are active in 175 countries. The services of this company are mainly focused on computer hardware, middleware, and software, and provide hosting and consulting services in areas ranging from mainframe computers to nanotechnology.
Recently Shyam Nagarajan, an executive partner at IBM Consulting, appeared on CoinDesk TV’s “First Mover” from the World Economic Forum’s annual conference in Davos, Switzerland. In the interview, he talked about the Central Bank Digital Currency (CBDCs) and suggested CBDCs issuers consider the hybrid model.
According to this IBM executive, CBDC can be controlled through the permission & permissionless concept easily and it will be a better way to implement CBDC in the payment system.
Shyam noted that huge numbers of Crypto & blockchain technology-based stablecoins may fulfil the role of CBDCs as “stopgaps until CBDCS are available in the market”, as CBDCs are in the development phase in most countries
In a separate interview, Rob Massey, global tax leader, blockchain and cryptocurrency at Deloitte, quoted the statements passed by IBM executives on CBDC and said that CBDC will be better & useful for global enterprises if issuers could add better technical advancements, like smart contracts features. In short, Rob suggested that Stablecoins like features in the CBDCs may help to push the adoption of CBDC easily.
CBDCs & challenges
In the past couple of years, the race of CBDC study & development surged significantly among the countries’ Central Banks.
The majority of the research from Central Banks showed that they are cautioned over the nature of CBDC because the implementation of CBDC may eliminate the role of the Central Bank significantly and also may harm the existing financial system. Alongside this issue, Central Banks are facing technical challenges to develop CBDCs.