The article from Forbes in the link below is symptomatic of a fairly common product-push approach. The author questions whether there is actually a use case for crypto currency in general and Central Bank-issued Digital Currencies (CBDCs) in particular. If only 8% of currency in circulation is physical, then where is the problem?
Bridge DFS (www.bridgeto.us) believes that quite often, this product-push approach in some areas of Fintech can be avoided. It’s costly and can cause failure. Let’s look at the idea of Central Bank-issued Digital Currencies (CBDCs). If only 8% of currency is physical, it looks like 92% is already digital, then what is the problem that CBDCs seek to solve? What are the hypotheses? That digital is not growing fast enough? Or is it that digital in it’s current form is too cludgy (too many processors, networks, etc)? Or is that digital is not secure? Or something else entirely?
That’s where Bridge DFS steps in. We follow the IDEO based Human Centered Design approach to understand the problem. We help our clients design their own solutions. A recent big win was when a key client engaged us to review their digital money approach. In a matter of weeks, we helped them self-design their own completely revamped roadmap. Because of their sense of ownership of the solution, they are fully motivated and implementing, undeterred by the pandemic.