Current CBDC Models Aren't Viable for Everyday Transactions: Copper's Research Head

cryptonews.com:

In an interview with The Block, Fadi Aboualfa, the head of research at crypto brokerage Copper, expressed that the existing Central Bank Digital Currency (CBDC) models are "not a viable cash equivalent that people could use in daily transactions."

Aboualfa raised doubts about CBDCs despite the recent proposal for Hong Kong to launch its (CBDCs) and the Bank of International Settlements (BIS) unveiling a blueprint for a global "unified ledger" to support CBDCs and tokenized assets. 

According to the Swiss-based global monetary authority report, the future of monetary systems lies in tokenization, which would be facilitated through programmable platforms under the supervision of central banks. 

The proposed "unified ledger" revolves around CBDCs, tokenized deposits, and other tokenized financial and tangible assets to automate and seamlessly integrate financial transactions.

However, Aboualfa expressed skepticism regarding the feasibility of existing models for Central Bank Digital Currencies (CBDCs). 

In the interview, he stated, "There hasn't been an actual CBDC model that is technically a replacement for cash. They all have several flaws, and for multiple reasons, issuing a CBDC by a central bank would be an enormous undertaking."

Aboualfa's concerns stem from the perceived shortcomings of current CBDC models. He believes that the existing models still need to successfully address all the necessary technical aspects to function as a true replacement for physical cash. 

These flaws in the designs of CBDCs raise doubts about their practicality and effectiveness in real-world scenarios.

Moreover, Aboualfa emphasizes the magnitude of the challenges in implementing a CBDC. 

He points out that the issuance of a CBDC by a central bank