By Lucas Williams
As the world is recovering from Covid-19 effects, the world’s economy is still struggling with the aftermaths of Covid-19. It is expected that the inflation rate will mount further; in the wake of the covid-19 pandemic. Central bankers across the globe started to show their interest in Bitcoin and other cryptocurrencies. Over 30 central banks have conducted surveys, and the results were a bit surprising.
A fair bit number of bankers showed their interest in crypto assets such as bitcoin (BTC). The force that pushed bankers to be more open about cryptocurrencies is the rise in inflation. Over 14% of the survey participants predicted that in the future crypto’s popularity will build pressure on top leadership to invest in the crypto business.
83% of the respondents said that a transparent framework to manage cryptocurrency investment could be valuable for the central banks’ image.
Central Bankers think that in the coming three to four years, a trend of wholesale CBDC will be introduced by banks. It will be done to create an additional income stream to manage their debts. Central Bankers of Swiss investment bank UBS endorsed that their institution was already working on detailed pilot projects regarding CBDC trade.
Failure to overcome pandemic aftermaths, spiraling debt levels, fear of inflation, and rampant unemployment are some of the core reasons. These problems have pushed central banks to look at cryptocurrency trade seriously.
Nowadays, central banks are motivated to invest in cryptocurrency business to learn more about the Bitcoin investment process and investment management. Crypto experts have welcomed this news with an open arm. They do believe that the current situation will force banks to start legislation to legalize cryptocurrency.
Benefits of cryptocurrencies are paramount, such as uncorrelated assets, and alternatives to USD and gold-backed economic framework.
Even though the current signs are encouraging for cryptocurrency investment. But still, many bankers and financial analysts believe that making any predictions about banks investing their reserves in Bitcoins is too early.
Cryptocurrency-backed investment framework might not diminish the role of the USD-powered economic system However, there is no doubt that digital currencies have provided the world with an alternative, which can benefit the masses in the future.