BIZ calls on central banks to urgently develop CBDCs to compete with crypto-assets-regulation
BIZ calls on central banks to urgently develop CBDCs to compete with crypto-assets-regulation
The head of the Innovation Hubs of the Bank of International Settlements (BIZ), Benoît Cœuré, has asked the central banks to react to the digital currencies of the central banks (CBDCs) in order to compete with initiatives in the private sector, including cryptocurrencies. "CBDCs will need years to be introduced while ... crypto-assets are already there," he said.
biz says that central banks have to hurry with CBDCs
Benoît Cœuré, head of the BIZ Innovation Hub, spoke on Friday at the Eurofi Financial Forum in Ljubljana about digital currencies of the central banks (CBDCS). He urged the central banks to develop CBDCs in order to compete with payment initiatives in the private sector, including cryptocurrencies.
"Today the financial system is shifting under our feet," he said. "Big Tech expand their presence in mass payment. Stable coins knock on the door and call for an official approval. Decentralized financial platforms (Defi) are a challenge for traditional financial intermediation. They all bring different regulatory questions that require quick and consistent answers."
He claimed that "CBDC will be part of the answer," he said: "A well-designed CBDC will be a safe and neutral means of payment and processing and serve as a common interoperable platform for which the new payment ecosystem can be organized."
The BIS official added: "It will enable an open financial architecture that is integrated and at the same time welcomes competition and innovation. And it will preserve the democratic control of the currency." He said:
Time for the central banks is over. We should roll up the sleeves and accelerate our work on the details of the CBDC design. The introduction of CBDCs will take years, while stable coins and cryptoassets are already available. That makes the start even more urgently.
Cœuré explained that the BIZ Innovation Hub supports central banks in the development of CBDCs. "We already have six CBDC-related proofs of concept and prototypes that are being developed in our centers, and others will follow," he revealed.
Cœuré added: "The goal of a CBDC is ultimately to maintain the best elements of our current systems and at the same time offer a safe space for the innovations of tomorrow. To do this, the central banks have to act while the current system is still in force - and now act."
according to the CBDC tracker of the Atlantic Council
The central banks that are currently examining CBDCs is the European Central Bank (ECB), which recently announced The official start of a two -year examination of a digital euro. "After completing the examination phase, we will decide whether we will start developing a digital euro or not," said the bank. What do you think that BIZ calls the central banks to accelerate CBDC development? Let us know in the comment area below. Bedy verification : Shutterstock, Pixabay, Wiki Commons
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