Fed Official Warns CBDCs Could be Embarrassing fad
- 01.07.2021 02:05 pm
Vince Graziani, CEO, IDEX Biometrics ASA comments: “Central Bank Digital Currency (CBDC) is continuing to gain momentum and offers huge potential for the financial sector – including transparency, speed, and financial inclusion among the unbanked and those without a smartphone. However, despite the many positives of CBDCs, one element that could slow role out down and risk it becoming just a “fad” is security. The rise of cryptocurrency scams and associated fraudulent behaviour over the last year has proven the dangers of launching innovative financial solutions without robust security measures. As a result, security in digital currency is paramount. To fully realise this potential, and ensure successful adoption for all consumers, a secure foundation built on financial innovation must be laid. One way this can be achieved is through the integration of CBDCs and fingerprint biometrics.
“Through fingerprint biometric authentication, customers can pay with the digital currency securely and swiftly with the simple push of a finger, allowing for the seamless integration of digital currencies into everyday payment processes. Most importantly, biometric payment solutions will prove critical when it comes to security, maintaining the growth rate of national digital currencies and earning the trust and buy-in of consumers. The result could be CBDCs driving the payments ecosystem forward and creating a more inclusive global financial system for all, which will ultimately reduce the number of people who find themselves financially excluded.”