The corporate investment firm believes that CBDCs are not a “fad.”
Stablecoins are a new form of securities transaction, MetLife noted.
The American corporation for institutional investments, MetLife Investment Management, published a report related to bitcoin (BTC) and cryptocurrencies in which it put the magnifying glass on altcoins such as Monero (XMR) and Ether (ETH), the cryptoasset of Ethereum. The company’s analysts also saw that central bank digital currencies (CBDCs) are drawing increasing interest.
Introduced as “the new kids on the block” and “the revolution of the altcoins«, MetLife Investment made an analysis on three alternative projects to bitcoin: Litecoin (LTC), Monero (XMR) and the Ethereum network (ETH). Additionally, the report mentions Cardano (ADA), Decred (DCR), Polkadot (DOT), DAI and Chainlink (LINK).
On LTC, XMR and ETH the corporation offered details on how they were born, what are their technical foundations, if they are privacy-oriented and how they have been received in the markets. Furthermore, on the Ethereum smart contract network, MetLife Investment made special mention in that it is a leading project of the cryptocurrency ecosystem.
“In many respects, the project has been an innovative success and has pushed the limits of what is possible in the space (…) Ethereum ushered in a new fleet of cryptocurrencies in which users could benefit not only from activities transactional, but also a technology comparable to that of a decentralized global computer, “the company highlighted.
At report titled «The Blockchain Blockbuster»(The success of blockchain in Spanish), the authors also state that there are growing motivations for creating CBDCs. The reasons for banks to design their own versions of bitcoin would be to promote financial inclusion, prevent criminal use of cash, and improve the infrastructure for electronic payments.
“As the world becomes increasingly interconnected and digitized, it seems unlikely that CBDCs will be a fad and instead receive increasing attention from authorities and consumers around the world,” the document highlighted in your conclusion.
To-dos for bitcoin and cryptocurrencies
Although it does not speak directly about making investments in bitcoin or other cryptocurrencies, the report gives an endorsement to these alternative projects to the creation of Satoshi Nakamoto. However, it also talks about the pending tasks that still arouse concerns in the bitcoiner world.
Called the “blockchain trilemma,” MetLife Investment mentioned that, to reach a potential massification of bitcoin, or its clones, improvements must be made in its developments. For the ones projects are sustainable there must be: scalability, decentralization and security.
Regarding Bitcoin as a digital system, the authors note that, although it is believed to be secure, “concerns have been raised regarding the centralization of mining, as well as the inability of the protocol to scale during traffic episodes. significant in the chain ‘.
The point about the centralization of mining refers to the dominance that China maintains over this activity in the bitcoiner ecosystem. Today this landscape is changing with miners looking more closely at countries such as Denmark, Finland, Iceland, Norway, Sweden and even the United States.
As for the backlogs in the processing of transactions in the Bitcoin network, the developers are implementing new scalability alternatives such as Taproot, for example. We must also mention the immediate payment channel network, Lightning.
The CBDCs addressed by MetLife Investment are under development in multiple countries. CriptoNoticias has reported on the progress that countries like China have made with the so-called digital yuan. Lithuania and the Bahamas have also reported progress on their new fully digital currency models.
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Investment giant fixes on Monero and Ethereum cryptocurrency