One of the world’s largest audit companies, Ernst & Young, recommended that the management of commercial banks begin to prepare for the massive entry of stablecoins and government cryptocurrencies (CBDC) into the market.
In the 2022 Global Regulatory Review report, EY auditors write that it is time for financial services companies to change their policies if they are to overcome the effects of digital asset proliferation. It’s time for banks to act now to keep customers.
“If customers, with the help of government cryptocurrencies, can trust savings directly to central banks, they will not need commercial banks. The income and margins of financial institutions will decrease significantly,” the authors of the EY review believe.
The audit company advises banks to work more closely with regional and national regulators. State cryptocurrencies can not only complement, but even completely replace the fiat currency. Therefore, bankers need to explore the possibility of working with CBDCs and stablecoins in advance.
“With an understanding of the general direction of regulation, financial institutions will be able to take the necessary steps to prepare for the coming changes,” EY analysts say.
Earlier it was reported that payments giant Visa and ConsenSys are developing a solution that allows the use of CBDC for everyday payments.
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