Main Street Matters Blog

With the London Interbank Offered Rate, or LIBOR, set to be largely discontinued in a few months, federal regulators are increasingly vocal about the need for financial institutions to be ready for the transition.

As the globe focuses on the rise of digital assets, the Federal Reserve is cautiously weighing whether to build a central bank digital currency (CBDC), which raises complex policy and technical considerations.

Microsoft is discontinuing its Internet Explorer browser in less than a year, requiring community banks and vendors to start preparing now.

Faster payments have arrived. Accelerated by the pandemic, the growth in digital and contactless payments has pushed consumer and business expectations toward the real-time movement of money.

In the past several months, bad actors have escalated their attacks against critical infrastructure and industries. These actions are bringing renewed focus to the role of cryptocurrencies in facilitating criminal activity and helping foreign governments evade sanctions and to the resultant need for heightened regulatory intervention.

According to the 2020 Global Innovation Barometer from GE, COVID-19 had a significant downward influence on innovation. However, community banks found themselves in a different category—increasing their innovative thinking during the pandemic.

The past year has been a trying time for our nation, particularly for America’s elderly population who were disproportionately impacted — both in terms of hospitalizations and deaths — from the coronavirus pandemic.

In the wake of the high-profile cyberattacks on SolarWinds and Colonial Pipeline affecting national security and the everyday lives of Americans, cybersecurity has never been a more pressing concern to community banks.

CBDCs are taking center stage around the globe, with multiple research projects underway. As central banks lay the framework for digital currencies, how money movement is architected could have a significant impact on community banks.

What is galvanizing the world market to pursue central bank digital currencies? The factors are varied. In this edition of ICBA’s Digital Dollar Digest series, we explore the catalysts for global interest in central bank digital currency (CBDC).