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IBM: Central Bank digital currencies can mitigate financial crisis risks



The only mechanism contributing to the normal operation of the financial market in times of crisis is the digital currencies of central banks (CBDC). About this in an interview with CNBC, said IBM Blockchain technical director Stanley Jung.

According to the expert, during the 2008 crisis, it was the lack of confidence in the “delivery versus payment” mechanisms that existed at that time that led to the suspension of the system for regulating financial flows.

“Combining banking solutions for digital money transfer systems, delivery mechanisms for all types of goods, derivatives and shares on the blockchain will prevent risks similar to those we observed in 2008,” said Stanley Jung.

Jung also believes that CDBC will help reduce the “fragmentation of the financial market,” by extending a wide range of digital payment solutions.

Recall that earlier in November, the head of the International Monetary Fund, Christine Lagarde, also urged central banks to consider the possibility of issuing digital currencies , since they, in her opinion, will help make transactions more secure.

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