BIS (Bank of International Settlements) annual report shaped it for us.

๐Ÿ‘‰ TL;DR Version:
- The metaphor for the future monetary system is a ๐Ÿ๐จ๐ซ๐ž๐ฌ๐ญ. See the diagram below.
- The central bank money is the solid tree trunk.
- The canopy facilitates ๐œ๐ซ๐จ๐ฌ๐ฌ-๐›๐จ๐ซ๐๐ž๐ซ activities.
- Private sector PSPs(Payment Service Providers) can embrace innovations and serve users better.

There is a burst of innovations in payments due to crypto and blockchains, but some structural flaws revealed in recent collapses make crypto ๐ฎ๐ง๐ฌ๐ฎ๐ข๐ญ๐š๐›๐ฅ๐ž for the foundation of the monetary system.

A system based on central bank money is a better choice.
We can then build a fast and efficient ๐ฉ๐š๐ฒ๐ฆ๐ž๐ง๐ญ ๐ž๐œ๐จ๐ฌ๐ฒ๐ฌ๐ญ๐ž๐ฆ on top of central bank digital currencies (CBDCs).

๐Ÿ‘‰ Over to you: Where are the commercial banks in the future monetary system?

Click Follow for more Payments/Blockchain Illustrations. Hua Li

#payments #cbdc #finance #banks