Financial services giant Deloitte has launched a new study to show how powerful Bitcoin can be as a powerful tool for creating a cheaper, more secure and faster fiat digital currency ecosystem, or specifically the Central Bank Digital Currency or CBDC. Deloitte’s report highlights the need for a complete overhaul of the existing fiat ecosystem to address the challenges ahead, such as slow, prone to failures and being expensive compared to efficiency in other high-tech industries. Governments across the nation have been exploring the possibility of issuing their CBDC to address these issues, improve efficiency and reduce costs, but Bitcoin is already well positioned to support governments in this endeavor, according to Deloitter.
The report, called “State-Sponsored Cryptocurrency,” highlights several differences between Bitcoin and the CBDC issued by the government and reiterates a major inflationary feature of fiat as the CBDC, which is that the CBDC has no limit on the amount of currency a government supports. In addition to determining the value of the CBDC.
Meanwhile, Deloitte also highlights some of Bitcoin’s shortcomings. “In order to gain a foothold, Bitcoin will have to deal with government money laundering and illicit trade requirements, as well as other key concerns such as volatility in value, ease of use challenges, and the general lack of acceptance by” trusted “organizations.”
The study also says that the authorities who first spread their CBDC would have the advantage of early bird, which could affect the use of their local currency in the international market.
Although many governments have entered the race to implement internal CBDCs, widespread adoption is one of the most important conditions for success.
The report also says that while the CBDC will not be a sudden replacement for Bitcoin and other cryptocurrencies, the growing acceptance of the CBDC will give users other options to identify the most appropriate method of payment, according to the report. , concludes by saying, “Bitcoin could ultimately create new opportunities that would transform the current payment system into one that is faster, more secure, and more expensive to execute.”
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