Mastercard’s blockchain and digital assets lead, Ashok Venkateswaran, questions the widespread adoption of central bank digital currencies (CBDCs) due to insufficient justification. Despite global exploration, only 11 countries have adopted CBDCs, posing challenges in broader acceptance.
Mastercard’s Asia-Pacific blockchain lead, Ashok Venkateswaran, voiced skepticism at the Singapore FinTech Festival regarding the broad adoption of central bank digital currencies (CBDCs). With 11 countries having adopted CBDCs, 53 in advanced planning, and 46 researching, Venkateswaran highlighted the difficulty in justifying CBDC adoption. He emphasized the need for CBDCs to offer spending flexibility similar to cash, a challenge he sees in the current landscape. Despite the International Monetary Fund’s endorsement, Venkateswaran argued that consumer comfort with traditional money forms hinders CBDC justification. He also acknowledged the substantial time and collaborative efforts needed to build the necessary CBDC infrastructure.