BIS Releases Paper On Central Bank Digital Currencies



The Bank for International Settlement and 9 Central banks have taken forward their work on retail digital currencies of central banks and have analyzed practical implementation issues and policy options.

The new sets of reports released by BIS explore how central bank digital currencies (CBDC) could efficiently meet the future needs of users through the development of interoperable systems, which support private innovation and also preserve the public trust.

– Advertisement –

For CBDCs to work efficiently and effectively, private and public institutions have to cooperate to ensure their integration with existing payment systems and to anticipate the future needs of customers.

Main Conclusions Of The Fresh Report Issued By These Central Banks And BIS

Several conclusions were drawn up from a fresh set of reports issued by the central banks and the BIS that looked into the needs of users, their technological design options, and the implications of financial stability of general-purpose or retail CBDCs.

The initial report by BIS explores and delivers on the future needs of consumers that encourage innovation, completion, and choice among a mix of intermediaries. It explores how private-public collaboration and interoperability can be designed into CBDC systems.

– Advertisement –

The 2nd report by BIS is focused on ways the CBDC can best help people and businesses in this fast transforming landscape. Lessons from past innovations showed that success would require harnessing network effects and not require users to obtain fresh devices. But a one-size-fits-all approach would not be encouraged and multiple perspectives would be considered through public consultation.

The 3rd report of the BIS highlights the possible impact of CBDC issuance on the banking system. The impact is studied in terms of overall resilience and intermediation capacity.

Several factors including data privacy, money laundering, and terrorism financing were the top challenges identified. The Central Banks discoursed in the paper included those of Canada, China, Malaysia, The Bahamas, Uruguay, Ukraine, Ghana, Eastern Caribbean, and the Philippines.


Source link

Next Post

Museum of American Finance to Bring Museum Finance Academy Certificate Program for High School Students to National Audience

Free Personal Finance Course Offers Scholarships to Top Achievers NEW YORK, April 11, 2022–(BUSINESS WIRE)–The Museum of American Finance announced it will bring its popular Museum Finance Academy (MFA) course for high school students to a national audience for the Spring 2022 semester with the addition of a second section […]

You May Like