CBDCS are more suitable for cross-border payments than Bitcoin, Stablecoin, ECB report says

BlockBeats - Central Bank digital currency (CBDC) could be the "holy grail" of cross-border payments, with the potential to outperform any other option on the market - including Bitcoin and Stablecoin, the European Central Bank (ECB) said in a study published on Monday. And with stablecoins acting as intermediaries, Bitcoin is the worst option for making cross-border payments more efficient. CBDCS and domestic instant payment systems have the greatest potential to reduce cross-border transaction costs and instant transactions, while Bitcoin cannot address the challenges of cross-border payments due to its inefficient proof-of-work consensus mechanism, high volatility, and exploitation by criminals, the study said. Beyond that, the study notes that in addition to concerns about the illegal use of stablecoins, regulators are concerned that stablecoins pose risks to monetary sovereignty and financial stability. The study also states that central banks developing CBDCS should discuss interoperability issues at an early stage to ensure the efficiency of cross-border transactions.