- Interoperability is a key challenge that needs to be addressed for digital finance to gain wider adoption, according to Moody’s.
- The emergence of stablecoins could play a crucial role in addressing the need for reliable digital cash options.
- Regulatory uncertainty remains a significant hurdle for digital finance.
- Here’s Moody’s outlook for digital finance in 2024.
Digital finance, a framework encompassing payments, transactions, and issuances based on distributed ledger technology (DLT), is gaining momentum, primarily driven by blockchain – the most recognized form of DLT.
However, broader adoption faces four key hurdles: interoperability gaps among DLT systems, the absence of dependable digital cash options, regulatory uncertainties, and technology risks. In 2024, Moody’s analysts anticipate gradual yet consistent advancements in overcoming these challenges.
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