KPMG Finds Digital Money Variants to Co-Exist in Market by Use Case

cryptonews.com:

The prevailing sentiment among digital asset stakeholders is that many digital money forms, such as central bank digital currencies (CBDCs), tokenized deposits, and stablecoins, are anticipated to coexist within financial markets over the next ten years, according to KPMG’s recent analysis.

KPMG suggested in a report published Thursday that these digital money forms will exist side-by-side instead of a single dominant option. While their use might overlap, the report predicts users will gravitate toward the most efficient and automated solutions available.

KPMG compiled insights based on discussions and digital asset-focused events that the firm hosted. It offers a well-rounded perspective on current market outlooks for digital currency as it includes TradFi, fintech, and crypto-native firms.

Regarding CBDCs, participants highlighted that widespread testing and pilot programs signal acknowledgment from central banks and governments of a transition toward a tokenized financial system.

According to the World Economic Forum (WEF), central banks worldwide have shown a strong interest in digital currencies. Nearly all, or 98%, are exploring the concept through research, pilots, or even launching their own currencies.

Banks appear enthusiastic about the potential of digital currencies for businesses (wholesale CBDCs), according to KPMG. However, doubts persist regarding a widespread launch for consumers (retail CBDCs) soon. This skepticism arises from a combination of economic and political uncertainties and technical challenges that must be addressed.

Some participants argued that CBDCs lack clear advantages over existing digital options like stablecoins and tokenized deposits. They believe these alternatives might offer similar