Cecilia Skinsley, the new head of the Bank for International Settlements (BIS) Center for Industrial Innovation, said on Monday that the central bank's digital currency (CBDC) will never be fully interconnected because of cross-border e-commerce restrictions.

Skingsley described the recovery of the password market in 2023, although there were upheavals last year, such as the collapse of FTX, a password trading center, and hoped that the field would learn from this adversity.

Limitations of the Bank for International Settlements warning CBDC

According to the Associated Press on February 6, Cecilia Skinsley, director of the Center for Industrial Innovation of the Bank for International Settlements, warned that the central bank's persistent efforts to promote the central bank's digital currency may face international constraints.

Skingsley stressed that the recovery of the password market has pushed up the price of passwords, increasing investor sentiment towards digital currency. Despite the unrest last year, the password sales market may have survived. In her view, after the unrest, the market prospects for CBDC and password sales have emerged.

"I think the industry is learning from this kind of adversity, and they will think of new things."

Cecilia Skinsley allows CBDC to update the technology of loan currencies, which can be transmitted more easily and cheaply to other countries. However, it will divide countries according to CBDC, and not every country has fully cooperated with other countries. Because of cross-border e-commerce restrictions, CBDC never has data sharing.

She suggests that some CBDC are less acceptable, while others, such as US Federal Reserve Chairman McGinnis Henry, are skeptical that their CBDC will be accepted by other countries.

"this opens up the question of how you maintain the overall objective of social policy that is extremely important to us-the recognition of the monetary system."

The password is the key.

Although 11 countries have launched CBDC, and more than 100 other countries are still exploring, data encryption may be the only solution for cross-border payment platforms. The move comes at a time when demand for cash from entities around the world has fallen, and the government expects to maintain its level of printing money to fend off threats such as Bitcoin and large and medium-sized technology companies.

But the bitcoin market rose more than 40 per cent last month, showing the resilience of the password market. Bitcoin is currently trading at $22879, down more than 1 per cent in the 24 hours before Jerome spoke at the federal reserve.

Please also refer toBinance applies Terra Classic (LUNC) update, will it start a big bull market?