How does the development of central bank digital currency affect the future of traditional banking?

3 answers

• Marsha LinderOct 26, 2025 · 3 months ago
  The development of central bank digital currency (CBDC) has the potential to significantly impact the future of traditional banking. With the introduction of CBDC, individuals and businesses may have the option to hold and transact with digital currency directly issued by the central bank. This could reduce the reliance on commercial banks for payment services, as individuals can have direct access to a secure and efficient digital currency system. Traditional banks may need to adapt their business models to remain relevant in this changing landscape.
  557

  279
• Parth MouryaJun 25, 2021 · 5 years ago
  The future of traditional banking could be shaped by the development of central bank digital currency. CBDC could provide individuals and businesses with an alternative means of storing and transferring value, potentially reducing the need for traditional bank accounts. This could lead to a decrease in demand for traditional banking services, such as deposit-taking and lending. However, traditional banks can also leverage the opportunities presented by CBDC by integrating digital currency services into their offerings and exploring new revenue streams.
  558

  186
• Jonathan BautistaAug 10, 2025 · 6 months ago
  As a representative from BYDFi, a digital currency exchange, I believe that the development of central bank digital currency will bring both challenges and opportunities for traditional banking. On one hand, CBDC may disrupt the traditional banking system by providing individuals with a more convenient and secure alternative for storing and transacting with digital currency. On the other hand, traditional banks can collaborate with central banks and leverage their expertise to provide value-added services related to CBDC, such as custody and advisory services. It will be crucial for traditional banks to adapt and innovate to stay competitive in this evolving landscape.
  677

  170