Central Banks Struggle to Regulate CBDCs Amidst Fintech Risks and Concerns

Fintech Benchmarks 2023 highlighted the escalating struggle among rookies digital currencies and traditional Institutions that control cash issuance.

high percentage of Central banks - nearly 73% - identified their primary hurdle as keeping up with regulatory Impulse obligations in novel fintech deals.

the number climbed to 89% in developing economic regions, while the main concern for central banks in developed Economies revolved around upgrading existing infrastructure systems.

large majority of Central banks saw that creation of middle bank digital CBDCs are most likely to increase cyber security threats (80%).

In the current digital Confluence era of financing and technology led to in Wave of Innovative products and services. However, this rapid development has provided a lot challenges for traditional financial Institutions, especially central banks.

A survey conducted during Fintech Benchmarks 2023 confirmed these concerns.

majority of Central banks expressed, equivalent to 73% difficulty in a guarantee regulatory compliance for These emerging solutions in the field of financial technology. the challenge becomes even more Clear in Economies still in Its development phase with the number rising to 89%.

Interestingly, the central banks in Mature economies have different interests. they main issue do not lie in regulation, however in update of Their systems are outdated. These banks are grappling with the mission of integrate their legacy systems with develop rapidly digital economy.

a critical part of this digital The revolution is the foreground of CBDCs. However, the possibility of CBDCs were not met with universal enthusiasm.

large majority of Central banks 80% to be exact believe that advent of CBDCs can lead to increase in Cyber ​​threats. This fear stems from fact that digitization, while offering many benefits, also Opens up new vulnerabilities for Cafe attack.