Gartner believes CFOs might learn more about crypto assets and blockchain technology in 2022. Large companies prefer CBDCs rather than investing in the development of their tools.
A study by consulting firm Gartner reveals that 20% of leading companies will use central bank digital currencies (CBDC) in 2024. They say that corporations will use them to make payments, store value, and take advantage of the performance of decentralized finance (DeFi).
According to the study, a growing number of traditional payment platforms accept crypto assets and CBDCs. That document highlights that these two factors will drive many leading companies to incorporate digital currencies into their applications.
Gartner notes that CFOs have been interested in blockchain applications since early 2021. They said in 2019 that companies had lost interest in blockchains as experiments and implementations were not working.
The Recommendations that Gartner Gives to Companies
The study recommends that companies interested in adopting CBDCs evaluate their specific use cases.
Gartner advises that CFOs and applications leaders assess several technologies, regulatory, legal, and strategic considerations. In addition, they should select the appropriate service providers and the ability to monitor and react to current regulatory guidance.
What Drives Companies to Adopt CBDCs
Companies do not have to invest in the development of applications on blockchains, which drives leading companies to adopt CBDCs. According to the study, many banks, payment platforms, institutional custodians of digital assets, and cryptocurrency wallets have already done the heavy lifting.
Another factor in the acceptance of CBDCs is that they can protect against the highest inflation in the United States in 39 years. At the beginning of December, the consumer price index (CPI) showed an inflation rate of 6.8%. That situation arose because the US Federal Reserve (Fed) has issued dollars at an unprecedented rate.
Gartner also noted that they expect CFOs to learn more about digital assets, currencies, and other blockchain applications. A growing number of professionals in financial institutions are aware of the relevance of cryptocurrencies and the technology behind them.
These Are Some Risks of CBDCs
Central bank digital currencies can favor cross-border trade for nations and businesses. However, their use involves the risk of losing the privacy that decentralized cryptocurrencies like Bitcoin offer.
As those digital currencies are not anonymous, governments can take advantage of them to exercise control over the population. In addition, the State has the right to confiscate them when it deems appropriate without users being able to do anything about it.
In contrast to decentralized cryptocurrencies like Bitcoin and Ether, they do not provide anonymity or independence from monetary authorities. On the other hand, they do not have volatility since they are electronic fiat money monopolized by the value of the US dollar.
The relevance of Bitcoin and altcoins in the economy has become increasingly evident, and financial institutions have not overlooked it. For that reason, several central banks worldwide have decided to issue their CBDCs to keep control over the way people use their money.
By Alexander Salazar
