Fitch: CBDC will increase control over the payments sector

by in Cryptocurrency News

Fitch

The introduction of central bank digital currencies (CBDCs) will create benefits but may disrupt the financial system. Such conclusions are contained in the report of the rating agency Fitch.

Among the advantages of CBDC, analysts named digitalization of operations, financial inclusion, increased control over the payment sector, and the fight against oligopolies of private companies.

The emergence of new means of payment will strengthen the monitoring of AML / CFT compliance. The authorities will receive a new tool for implementing incentive programs or providing assistance in the event of natural disasters, experts added.

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Fitch attributed a sharp outflow of funds from bank deposits to CBDC to the risks of launching national digital currencies. According to experts, this will weaken the role of banks as financial intermediaries. Analysts also mentioned cybersecurity threats.

According to Fitch, active research and the launch of pilot projects indicate that digital currencies are coming soon.