CBDCs Offer Faster Settlements: Citi Survey
Securities firms are considering central bank digital currencies (CBDCs) to shorten local financial settlement cycles within the next five years. Citi’s Securities Services Evolution white paper highlights India’s transition to T+1 settlements, ensuring trade-related settlements conclude within 24 hours. A Citi survey reveals 87% of respondents and 12 financial markets infrastructures view CBDCs as a viable option for shorter settlement cycles by 2026, with support for CBDCs increasing by 21% year-on-year.
Domestic pilots and international projects both contribute to the growing support for digital fiat currencies year over year. Citi’s report stated:
Digital asset adoption faces challenges like regulatory uncertainties, limited knowledge, and compatibility with traditional financial systems. Institutional investors, banks, and asset managers play a crucial role in delivering market-wide solutions for centrally governable financial instruments like CBDCs and stablecoins. By 2028, financial aspirations will move beyond T+1, incorporating digital ledgers, shorter settlement cycles, digital cash-focused funding mechanisms, and removing core banking systems. The Reserve Bank of Australia completed its in-house CBDC pilot to support financial innovation in debt securities markets and private digital money sectors, enhancing resilience and inclusion within the digital economy.
(With inputs from Shikha Singh)
You need to login in order to Like
