New BIS Innovation Hub Head Outlines Cross Border CBDC Limitations

• She cautioned that CBDC would meet geopolitical restrictions.
• Cecilia Skingsley believes that CBDCs modernize the transfer of currency.

The new head of the BIS Innovation Hub Cecilia Skingsley remarked on Monday that central bank digital currency (CBDC) would never have complete interconnectivity owing to cross-border limits.

Despite the instability in the crypto business last year, such as the bankruptcy of the FTX crypto exchange. Skingsley notes the rebound observed in 2023 and expresses faith that the industry will learn from these setbacks.

CBDC Modernizes Transfer of Currency

On February 6, Reuters published comments from the director of the BIS Innovation Hub, Cecilia Skingsley. In which she cautioned that attempts by central banks to push for central bank digital currencies would meet geopolitical restrictions.

Skingsley pointed out that the rising price of cryptocurrencies is being driven by the market rebound, which is improving investor mood. The cryptocurrency market has weathered the storm of the last year. Following the recent market fluctuations, she has a fresh perspective on CBDC and the cryptocurrency sector.

Cecilia Skingsley believes that CBDCs modernize the transfer of currency by making it simpler, cheaper, and faster to do so. However, it will separate nations by CBDC, and not all nations will be willing to completely collaborate with each other.

As long as there are borders, CBDCs will not be linked. She alluded to the limited acceptability of some CBDCs, while others, like Bank of England governor Andrew Bailey, have expressed skepticism about the international adoption of their CBDC.

Cryptocurrency is now the sole viable option for international transactions, despite the fact that 11 nations have officially started a CBDC and over 100 are investigating the possibility.