Morgan Stanley | Crypto analyst Sheena Shah reviews the digital currency initiatives that central banks (CBDCs) are starting to put forward as an alternative to the use of cryptos. The use of cryptocurrencies for everyday payments is complex and expensive for the consumer and the ecosystem has not developed, except for in Switzerland. Companies such as Adyen have no plans to incorporate crypto payments into their offerings
Their conclusions are that (1) it is easier to pay in USD rather than in cryptos, (2) the demand for cryptos as a means of payment is limited, (3) Visa and Mastercard crypto card launches are growing in Europe and Latin America, (4) these developments contribute to the process of de-dollarisation and more and more countries (including the EU) are looking to mitigate the risk of dependence on the USD for their payments by launching their own payment system under their CBDC.
