• Shyam Nagarajan, executive partner at IBM consulting, believes that CBDCs are the future of money.
• He suggests that issuers of CBDCs should consider a hybrid model of permissioned and permissionless currency.
• Nagarajan was speaking at the World Economic Forum’s annual conference in Davos, Switzerland.
At the World Economic Forum’s annual conference in Davos, Switzerland, Shyam Nagarajan, executive partner at IBM Consulting, discussed the future of enterprise blockchain, CBDCs, and Web3. He suggested that central bank digital currencies (CBDCs) have the potential to change payment systems and that issuers of CBDCs should consider a hybrid model of permissioned and permissionless currency.
Nagarajan has been a part of IBM for over a decade and is an expert in blockchain, Web3.0, and sustainability. He believes that CBDCs will replace the current digital currency system and noted that the current system has a few issues that need to be addressed.
The current financial system has a lack of interoperability, he said, which prevents users from being able to move their money between different systems. He added that this lack of interoperability can lead to higher costs for users, and that a CBDC-based system would be more efficient and cost-effective.
Nagarajan also noted that the current system is slow and inefficient when it comes to transferring money. He said that a CBDC-based system would be much faster and more efficient, as transactions could be processed in seconds instead of days.
In addition to these benefits, a CBDC-based system would also be more secure, he said. He noted that CBDCs would be issued directly from the central bank, which would ensure that transactions are secure and that users’ funds are safe.
Nagarajan also discussed IBM’s sustainability efforts and his insights into discontinuing blockchain-enabled shipping solution TradeLens. He believes that TradeLens was a successful venture and that the discontinuation of the program is due to the fact that it was not cost-effective for IBM to continue to operate it.
Overall, Nagarajan’s viewpoint on CBDCs is that they offer a more efficient and secure payment system that has the potential to revolutionize the financial system. He believes that issuers should consider a hybrid model of permissioned and permissionless currency in order to maximize the benefits of CBDCs. With IBM’s sustainability efforts and insights into discontinuing blockchain-enabled shipping solution TradeLens, Nagarajan is working to help shape the future of enterprise blockchain and CBDCs.