With insights from Moody’s Corporation, a financial service platform, reports, digitalization is helping to improve the future of money but the traditional central money existing in commercial banks will remain on the lead, stated Cointelegraph. It is expected that after observing a range of emerging or potential forms of money it can be concluded that trust always outshines efficiency.
It is expected that the monetary scenarios are getting divided and also new payment method supports the use of money from commercial banks “We believe that digital wallets […] will support the dominance of commercial bank money as long as bank accounts remain their primary source of digital currencies,” Moody’s added, Cointelegraph highlighted.
Sources revealed that “CBDCs will be perceived as the safest form of digital money,” Moody’s added further. It is believed that most Central bank digital currencies (CBDCs) will be able to be intermediated, preserving the position of the commercial bank, added Cointelegraph.
Furthermore, “Digital money issued by a private company could significantly impact the payment landscape. Nevertheless, […] there has been no successful project to date, and many countries will likely not allow them to operate at scale,” Moody told Cointelegraph.
(With insights from Cointelegraph)