The adoption and active usage of digital currencies, particularly central bank digital currencies (CBDC), threatens the role of commercial banks in the global financial system, Moody’s reported.

According to the agency, cross-border digital transactions would demand new specialized infrastructure that would leave no place for intermediary banks. Furthermore, the shift to CBDCs would reduce their profits from payments, correspondent services, and foreign-exchange transactions.

However, central bank digital currencies have certain benefits for banks as well. CBDCs would allow users to carry out cross-border transactions instantly with very low commission fees, eliminating the need to register in multiple payment systems. Analysts at Moody’s noted that banks would have to redesign their current operations when adopting CBDCs and develop new systems that would support digital currencies.