International interoperability will become a cornerstone of the Crypto Comeback Pro career as it progresses, according to Douglas Arner, Director of the Asian Institute of International Financial Law at the University of Hong Kong.
Speaking at the Unitize blockchain conference today, Arner said that the interconnections between the different global economic systems will become „one of the greatest challenges and one of the greatest opportunities“ as more countries participate in CBDC projects around the world.
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In Arner’s opinion, the Chinese financial system already has some predispositions for the cross-border adoption of the next digital yuan project, such as the renminbi exchange lines that China has established with dozens of countries around the world in recent years:
„If we think about China’s [CBDC] proposal at the moment, it is largely limited to operating in the context of physical and electronic borders. But one can imagine how in the context of those electronic borders if you integrate the system with, say, the BMA exchange lines that are used in a number of different countries, that kind of BMA electronic area can be expanded outside.
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In addition, Arner described three financial institutions that appear to have the most influence on the intensive career of CBDCs, which he referred to as „major central banks of currency issuance“: the Federal Reserve, the People’s Bank of China and the European Central Bank. He elaborated:
„These are animals different from everything else. What Canada or Sweden or the United Kingdom or Singapore, Australia or Saudi Arabia can do is really interesting and nice, but the rest of the world is not going to adopt that in the context of large-scale economic or financial transactions.
Arnern concluded that „there is definitely an element of geopolitical potential, not necessarily competition, but potentially alternatives or even fragmentation in the future.