Fadi Aboualfa, head of research at London-based crypto custodian Copper, stated that current digital central bank currencies (CBDC) are insufficient.
Copper research manager Fadi Aboualfa in a statement, criticizing CBDCs not yet applicable not suggested.
on the market existing or just developed in testing phase any CBDC model will technically be able to replace cash at capacity not Emphasizing that, Aboualfa stated that if this is achieved, a significant initiative will be implemented:
Technically, there is no real CBDC model that can replace cash. They all have their flaws, and a central bank’s CBDC would be a huge undertaking for many reasons.
CBDCs or central banks or private banks Stating that it could be released by the company, the research director argued that both possibilities contain problems in themselves.
A central bank may issue a CBDC or a decentralized stablecoin While stating that he did not have the ability and infrastructure to operate, he mentioned that the risk is greater for private banks.
aboualfa, Silicon Valley Bank (SVB) example, if the bank had issued CBDCs, with the financial crisis, CBDCs would lose confidence and that this asset would be that it would de-peg against the dollar told.
Where CBDCs have a specific commercial bank brand consumer confidence issues Aboualfa, who insistently underlined that it could occur, continued his statement with the following statement:
CBDCs issued by commercial banks could wreak havoc in decentralized markets if news of the scandal hit one of the banks.