'If a universal digital currency appears, it will help to reduce the cost of using money' - comment on the breaking news

We are happy to share new comments of our CMO Noam Frishman on the latest breaking news regarding the meeting of the largest banks on cryptocurrency research. A few days ago Forklog published a note with the headline “A Group of the World’s Leading Central Banks Will Explore the Prospects for Digital Currency Issues”. We found this note interesting.

It states that the Central Banks of Canada, United Kingdom, Japan, European Union, Sweden and Switzerland have made a joint effort with the Bank for International Settlements (BIS) to create a group for studying digital currencies of the Central Bank (CBDC).

It seems that the cryptocurrency keeps attracting the financial giants. Yet this matter is obvious given their interest in the blockchain and willingness to find the ways to incorporate technology in the payment system.

“The fact that central banks of the largest economies in the world are talking about this, shows how deeply digital currencies are embedded in our lives as a means of payment,” says CMO of Orion.finance Noam Frishman. He added, “Generally, I consider this decision as a positive step. If a universal digital currency appears, it will help to reduce the cost of using money, due to lower transaction costs, as such. In addition, there will be no need for the infrastructure that money turnover requires — cash offices and commercial banks, which will also reduce costs.”

However, such a decision might have a negative impact on tightening AML / KYC control of existing cryptocurrencies. After all, this could be considered as an attempt to monopolize the crypto finance in general. It is also not quite clear what kind of technology would be used to manage a digital currency. If we are talking here about blockchain technology and “banking” cryptocurrency, central banks would have to flatten out the exchange rate and increase transaction speed.

The Orion.finance team is curious about what is going to happen next. And what do you think are the consequences of introducing a “banking” digital currency?