IBM Exec Shares Belief: CBDCs Are the Future of Money

Speaking to CoinDesk at the 2025 World Economic Forum in Davos, Switzerland, IBM executive Shyam Nagarajan shared his belief that CBDCs are the future of money. Nagarajan\'s insights are particularly relevant as central banks worldwide explore the possibilities of digital currencies.

Central bank digital currencies (CBDCs) have the potential to change payment systems, Shyam Nagarajan, an executive partner at IBM Consulting, said Monday on CoinDesk TV’s “First Mover” show. He emphasized the transformative power of CBDCs, outlining how they could reshape the financial landscape.

Nagarajan\'s perspective aligns with Stanley Yong, global lead for central bank digital currency (CBDC) solutions at IBM, who has said that CBDCs can help to mitigate the risks that contributed to the 2023 banking crisis. This highlights a key advantage of CBDCs: their potential to improve financial stability.

According to Shyam Nagarajan, issuers should contemplate a hybrid approach of permitted and unpermitted money. Shyam Nagarajan says issuers should consider a hybrid model of permissioned and permissionless currency. This nuanced approach suggests a future where CBDCs offer both control and flexibility.

The adoption of CBDCs is a complex undertaking. As Central bank digital currencies (CBDCs) have the potential to change payment systems, Shyam Nagarajan, an executive partner at IBM Consulting, said Monday on CoinDesk TV\'s "First Mover" show, a strategic approach is essential to ensure a successful implementation.

IBM, with its expertise in blockchain and enterprise solutions, is playing a key role in shaping the future of CBDCs. Shyam Nagarajan\'s insights provide valuable context as central banks navigate the opportunities and challenges of this emerging technology. Central bank digital currencies (CBDCs) have the potential to streamline payments, improve financial inclusion, and foster innovation in the digital economy.