European Central Bank’s (ECB) interest in identifying the best cross-border payment solution stems from the fact that it serves as the central bank of the 19 European Union countries which have adopted the euro. ECB recognized CBDCs as a better fit for cross-border payments owing to greater compatibility with forex exchange (FX) conversions. Two major advantages highlighted in this regard are the preservation of monetary sovereignty and the ease of instant payments via intermediaries such as central banks.
A private solution “is going to be better” for cryptocurrency as long as risks are mitigated through regulation. Mitigating risks related to crypto adoption can be fended off by strong regulations and state backing. Private companies are “better than the central bank at innovating” the best features for cryptocurrency.