As the global payment system keeps evolving with a decline in the demand for cash, Bill Winters, CEO of British multinational banking and financial services company Standard Chartered said that the development of several cryptocurrencies to salvage the situation is “inevitable.”
Winters made this known during the Singapore FinTech Festival held online today as published by CNBC.
The CEO stated that both private cryptocurrencies and Central Bank Digital Currencies (CBDC) have specific roles in restructuring the global payment systems.
For this reason, Standard Chartered would announce further news “along these lines” in the coming days, he said.
Since Bitcoin (BTC) was introduced in 2009, more than 7,000 cryptocurrencies have also been launched, with some pegged to fiat currencies such as Tether (USDT), Circle stablecoin (USDC), among others.
Winters who did not buy the idea of creating stablecoins said private digital currencies should be developed to solve the payment lapses in specific projects in order to boost the industry’s efficiency.
“The exciting development for me is to have currencies that don’t match a currency in and of itself, but are intended to capture either a superset of a subset,” he said.
He continued that when cryptocurrencies are developed with a particular “niche” in mind, users would have the confidence that the project’s financing is verifiable, standardized, and monitored.
The SC chief added that the invention could not be replicated with the current traditional financial system or CBDCs.
According to Winters, the roll-out of special-purpose cryptocurrencies is gradually creating new opportunities for the payment industry.
Based on Winters’ comments, it is clear that traditional financial players are still not comfortable with private firms developing cryptocurrencies pegged to fiats.
Meanwhile, Facebook’s request to launch its Libra digital currency pegged to a basket of fiat currencies, including USD, EUR, GBP, etc., was denied on several occasions.
Constant regulatory scrutiny has forced the firm to make several moves to ensure that the project gets the green light.
The Libra Association is poised to launch its digital currency by next year. The association recently renamed the Libra project to Diem, a move that would allow the cryptocurrency to be pegged to only the USD instead of a basket of fiats.
Affiliate: Get a Ledger Nano X device for $119 so hackers won’t steal your crypto.
Author: Lele Jima