Emerging CBDC cross-border transaction technology can put the banks’ profits at risk, as per a new Moody’s report.
Emerging central bank digital currency cross-border transaction technology has the potential to transform the global economy by making services for many of its participants faster, cheaper, and safer.published yesterday by Moody’s Investor Service. But it is the same set of technologies that could possibly reduce banks’ profits from payments, correspondent services, and foreign-exchange transactions as the role of CBDCs grows bigger. It could completely wipe out the role of correspondent banks in the process.Banks may have to build the infrastructure required to support CBDC interoperability at scale, putting a strain on resources in the short term.