Digital transformation and the rise of fintech-Blockchain, Bitcoin and digital finance

Overview: Putting it all together, CBDCs are likely a more efficient and effective way to deliver the benefits of digital money than either free-floating cryptocurrency or private stablecoins. The specific use cases, including financial inclusion, some cross-border payments, and financial stability monitoring, are perhaps not as compelling as the ubiquity of projects in this area would suggest. However, the potential for a non-USD alternative set of payment rails to gain traction is arguably a geopolitical risk factor worth managing. There are a number of choices in the design of a CBDC that are critical to its success and transformative potential. First and foremost, a retail token runs the risk of disrupting fractional reserve monetary systems and disintermediating banks. This argues for a segregation between central bank and private money, even if both are migrated to a digital token-based architecture. The choice of protocol is key to efficient processing of