What does the future hold for CBDCs in Europe, and what insights do experts have on stablecoin adoption? These questions were addressed at EBAday 2024 in Lisbon, where leaders in digital currencies explored the evolving landscape of digital assets.
During the panel session titled “Challenges and Benefits of CBDCs, Tokenised Deposits, and Stablecoin Adoption,” prominent speakers, including David Cunningham from Citi, Manuel Klein from Deutsche Bank, Alessandro Roveda from Nexi Group, Gilbert Verdian from Quant, and Phoebe Zhou from HSBC, discussed how different countries are managing public and private money.
Cunningham began by outlining Citi’s perspective on CBDC initiatives, emphasizing the need for industry standards and the importance of getting aspects right. He expressed concern over how regulations for CBDCs and stablecoins might impact commercial earnings and business models.
Klein highlighted Deutsche Bank’s involvement in the Digital Euro project and their exploration of blockchain capabilities, emphasizing the push for programmability within transactions. He noted that recent developments focus on enhancing blockchain technologies to create more efficient transaction processes.
Verdian described Quant’s work in fostering interoperability among various forms of money, sharing insights from Project Rosalind, which underscored the significance of programmability in digital transactions. He explained that programmability could automate risks and integrate complex processes into money.
Zhou discussed HSBC’s initiatives, including Project mBridge, which aims to create a wholesale CBDC, and Project Ensemble, which focuses on a centralized ledger system. She highlighted the importance of collaboration among banks to develop effective blockchain solutions.
Klein observed a shift toward more centralized usage of blockchain in banking, with emerging networks formed by groups of banks improving cross-border payment processes. Cunningham stressed the necessity of transitioning from experimental phases to real-world implementation, urging incumbents to act decisively.
Zhou added that various countries are making progress with CBDC technologies, noting innovation in places like Ireland and Hong Kong. Verdian emphasized the importance of banks enhancing their internal infrastructures to effectively respond to the demands of CBDCs.
Roveda pointed out that fragmentation within business communications poses a significant challenge, stressing the need to understand technology’s application better to address existing issues.
In closing, Zhou highlighted HSBC’s collaboration with tech giants and companies across jurisdictions to enhance their blockchain capabilities, emphasizing the value of learning from each other while being practical about operational costs.