The Treasury Update Podcast CBDCs vs. Fiat Currency: The Future of Digital Payments with Royston Da Costa
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Dec 16, 2024 Royston Da Costa, an Assistant Treasurer at Ferguson, shares insights on the evolving landscape of digital payments. He discusses how CBDCs can enhance payment processes with real-time tracking and efficiency, offering a more stable alternative to cryptocurrencies. The conversation highlights the structural challenges traditional banking faces and the benefits of innovation like blockchain. They also delve into the shift from cash to digital currencies and explore the economic implications for businesses embracing these new payment methods.
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CBDCs Improve Stability and Transparency
- Central Bank Digital Currencies (CBDCs) remove volatility by pegging to fiat currencies like the dollar or euro.
- CBDCs provide real-time digital tracking for payments, enhancing visibility and reducing delays significantly.
Blockchain Beats SWIFT GPI for Tracking
- SWIFT GPI improves payment visibility but still relies on outdated manual processes.
- Blockchain technology underlying CBDCs offers superior, tamper-proof tracking of each payment step for faster resolution.
Frustration with Payment Retrieval Delay
- Royston has personally experienced delays in payment retrieval despite escalations between banks.
- Payments can be held without legal time limits for return, frustrating corporate treasury operations.