Former Ripple top manager: "CBDC can not solve all the problems of the financial industry" – Bits Media

Dilip Rao, Former Ripple top manager, head of the digital currency of the Central Bank of Australia, stated, that not all problems can solve CBDC, which the financial industry is now facing.

Dilip Rao (Dilip Rao) leads the research program in center Digital Finance Cooperative Research Center, Cooperating with the reserve bank of Australia to study the options for using a digital Australian dollar. RAO reported, that the Central Bank of Australia is studying 14 possible options for using your own digital currency, And soon a report will be published about this.

RAO said, that if now digital currencies of the Central Bank cannot solve any specific problems in the payment sector, then in the future CBDC can become a "reserve option" to solve problems, which is not yet suspected. but, For the massive introduction of state cryptocurrency, the central banks will have to answer people to the question, Why should they want to use it.

As Rao put it, CBDC is not necessary to use in every transaction. In his opinion, Large institutions may be interested in state stabiblcoins, trading tokenized assets, since the use of CBDC can reduce related risks.

The main obstacle to the introduction of any digital currency of the Central Bank may be the need to amend the legislation, And this will require support from the population, at least, In Australia. So that such changes go through parliament, Politicians should “go to the people” and hold broad public consultations.

These discussions should be focused on that, how state cryptocurrencies can solve people's problems, Having simplified their access to the financial sector or banking service. According to RAO, No politician will do it, which will lead to a loss of votes.

Many are afraid, that digital currencies of the Central Bank can violate confidentiality and be used to monitor users. Due to these fears, In May, American legislator Alex Muni (Alex Mooney) introduced a bill against testing a digital dollar. Recently Bank for International Settlements (TO) published a report on the prospects for the introduction of state stablecoins, noting the need to resolve the issue with confidentiality.