The company's experts suggest that the massive introduction of digital assets can reduce the income of banking organizations
One of the largest consulting companies EY, in its global regulatory review for 2022, warned banks about the need to change some approaches in their work due to the issuance of national cryptocurrencies (CBDC).
The company noted that now banks are faced with the task of overcoming the uncertainty caused by the massive adoption of cryptocurrencies.
EY experts recommended that banks work more closely with regional and national regulators in order to anticipate the possible introduction of cryptocurrency and assess its impact on their business in advance.
“If customers can keep their money in a central bank, they won’t need a retail bank. Because of this, the income of banks will drop sharply,” the company said in a report.
Last year, JPMorgan strategist Josh Younger argued that the rapid creation of national digital currencies could lead to the “cannibalization” of the commercial financial system.
According to Younger, clients will start moving their funds from private banks to CBDC accounts at central banks, which threatens the stability of the private banking sector.
