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Fintech experts debating on Central Bank Digital Coin

Fintech experts discuss whether we are ready for the introduction of CBDC

Currently there is a complete mystery on that”
— Olegs Cernisevs, Blackcatcard CTO
GZIRA, MALTA, November 23, 2023 / -- Malta, which is currently hosting SiGMA Europe, one of the most iconic events dedicated to iGaming and emerging tech, has recently witnessed a panel discussion entitled "Central banks: how to stay ahead of the digital finance revolution". The discussion featured Olegs Cernisevs, CTO at Blackcatcard, Domnik Mifsud, CMO at DMifsud Finance and moderated by Torben Friis, Managing Director at Match Liquidity DMCC.

The number of participants, somewhat not quite numerous, did not do justice to the quality of discussion. The panel explored whether financial institutions and society were ready for the introduction of Central Bank Digital Currency (CBDC).
Domnik Mifsud pointed out that such measures would inevitably lead to decrease in the amount of “classic” or traditional bank deposits, which in its turn would see potential problems with credits and loans. Olegs Cernisevs, CTO at Blackcatcard, also focused on the fact that even though the payments will be processed a lot faster, there is still a bit unresolved issue with transparency of each transaction, given that as of now there is no understanding what blockchain will be used for data storage. “Currently there is complete mystery on that” - commented Cernisevs.
When asked by Torben Friis in terms of instruments that CBs have available to enforce the implementation of CBDC, both Cernisevs and Mifsud agreed that the answer was - close to none. “Everything or almost everything will depend on local markets and society. CB can implement CBDC but it will be of no use if people, banks and other market participants will not use it”, - the experts stated. Moderator, Torben Friis from Match Liquidity DMCC highlighted: “Central Banks are caught in this catch 22 where they on the one side must talk down crypto and private networks such as BTC, USDC, etc. At the same they must prepare for the launch of their own CBDC which will 100% constitute competition to private networks.”

The issue of privacy caused by publicly visible blockchain transactions were also addressed during the panel discussions. Olegs Chenisevs pointed out the need for CBDCs to entail a privacy layer but this could cause the transparency of CBDCs to be lost as accountability of circulation could be obfuscated. To this Mr. Mifsud was convinced that a layer 2 kind of solution with certain elements would be required. As a closing question, Torben Friis asked the panel attendees when they expected such adoption to go live. The unanimous answer was beyond early 2025.

Natalia Kolesnikova
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