TECH & AI
2 UNIVE
DIGIT CURR
THE FUTURE
Elsewhere , ongoing experiments with cryptocurrencies and central bank digital currencies ( CBDCs ) look set to culminate in the widespread adoption of universal digital currencies by the mid-2030s . But , whether this will be an evolution of existing cryptocurrencies like Bitcoin or a new form of blockchainbased currency remains to be seen .
Jorge Lesmes , Senior Director & Client Partner , Banking at NTT DATA , highlights the current focus of digital currency innovations : “ Recently , most digital currency innovations have focused on regulatory compliance , enhancing security and improving stability .
“ However , innovations to help integrate these currencies , like Central
Bank Digital Currencies ( CBDCs ) and crypto , with financial systems are also gaining momentum .”
The potential impact on businesses is significant . Universal digital currencies could enable seamless peer-to-peer transactions without intermediaries , reducing transaction costs and increasing efficiency .
Moreover , they could pave the way for ‘ programmable money ’ powered by smart contracts , automatically executing transactions when preset conditions are met .
According to EY ’ s 2019 Global FinTech Adoption Index , two-thirds of consumers already utilise at least two or more fintech services . As universal digital currencies become more
166 October 2024