Fun

BIS Asks Central Banks to Urgently Develop CBDCs to Compete With Crypto Assets

News Feed - 2021-09-13 01:09:20

BIS Asks Central Banks to Urgently Develop CBDCs to Compete With Crypto Assets


The head of the Bank of International Settlements (BIS) Innovation Hub, Benoît Cœuré, has urged central banks to act now on central bank digital currencies (CBDCs) to compete with initiatives in the private sector, including cryptocurrencies. “CBDCs will take years to be rolled out, while … crypto assets are already here,” he said. BIS Says Central Banks Need to Hurry up With CBDCs


Benoît Cœuré, head of the BIS Innovation Hub, talked about central bank digital currencies (CBDCs) at the Eurofi Financial Forum, Ljubljana, Friday. He called on central banks to urgently develop CBDCs to compete with payment initiatives in the private sector, including cryptocurrencies.


“Today, the financial system is shifting under our feet,” he explained. “Big techs are expanding their footprint in retail payments. Stablecoins are knocking on the door, seeking regulatory approval. Decentralized finance (defi) platforms are challenging traditional financial intermediation. They all come with different regulatory questions, which need fast and consistent answers.”


Asserting that “CBDC will be part of the answer,” he explained: “A well-designed CBDC will be a safe and neutral means of payment and settlement asset, serving as a common interoperable platform around which the new payment ecosystem can organize.”


The BIS official added: “It will enable an open finance architecture that is integrated while welcoming competition and innovation. And it will preserve democratic control of the currency.” He opined: The time has passed for central banks to get going. We should roll up our sleeves and accelerate our work on the nitty-gritty of CBDC design. CBDCs will take years to be rolled out, while stablecoins and cryptoassets are already here. This makes it even more urgent to start.


Cœuré explained that the BIS Innovation Hub is helping central banks develop CBDCs. “We already have six CBDC-related proofs of concept and prototypes being developed in our centres, and more to come,” he revealed.


Cœuré added: “A CBDC’s goal is ultimately to preserve the best elements of our current systems while still allowing a safe space for tomorrow’s innovation. To do so, central banks have to act while the current system is still in place – and to act now.”


According to the Atlantic Council’s CBDC tracker, 81 central banks are currently exploring their own digital currencies. Among them, five have launched, 14 are being piloted, 16 are under development, and 32 are being researched.


Among the central banks currently studying CBDCs is the European Central Bank (ECB), which recently announced the official launch of a two-year investigation of a digital euro. “Once the investigation phase has ended, we will decide whether or not to start developing a digital euro,” the bank said.


What do you think about the BIS asking central banks to speed up CBDC development? Let us know in the comments section below. US SEC Issues Warning on Crypto Investment Scams Citing "Some Investors May Have FOMO" REGULATION | 18 hours ago SIX Swiss Exchange Receives Regulatory Approval to Launch Digital Asset Bourse REGULATION | 1 day ago Tags in this story bank of international settlement, BIS, CBDC, cbdc development, cbdc launch, Central Bank, central bank digital currency, digital euro, ECB


Image Credits: Shutterstock, Pixabay, Wiki Commons Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments

News Feed

Analyst Says Bitcoin Price At $100,000 Is A ‘Dangerous Zone’, Predicts Massive Crash
Este artículo también está disponible en español. The Bitcoin price recently achieved a monumental milestone, crossing the $100,000 threshold for the first time in its hi
European Union to Regulate Stablecoins, Not Issue Its Own: Source
The European Union is taking a closer look at how to regulate stablecoins, but has no plans to issue one of its own. A group within the EU presidency is working on a draft political
Virtual Assets Unleashes Retail Cash Reload Innovation for Purchasing Cryptocurrency
Virtual Assets Unleashes Retail Cash Reload Innovation for Purchasing CryptocurrencyInstantly add cash to your Crypto Dispensers account with Green Dot @ the Register
Biggest Movers: ETC up Nearly 30% on Tuesday, as Merge Timeline Is Set
Biggest Movers: ETC up Nearly 30% on Tuesday, as Merge Timeline Is Set Ethereum classic was a notable mover in today’s session, as the token rose by nearly 30% on Tuesday. T
Ana Paula Pereira6 hours agoTerraform Labs seeks access to FTX wallets in fraud defenseTerraform filed a motion to access information from wallets used by short sellers during the collapse of its algorithmic stablecoin i
New York Regulator Calls Crypto Theories Associated With Signature Bank Closure ‘Ludicrous’
New York Regulator Calls Crypto Theories Associated With Signature Bank Closure "Ludicrous" Adrienne A. Harris, the superintendent of New York’s Department of Financial Servi
Amaka Nwaokocha10 hours agoBinance’s zero-fee Bitcoin update could echo March market downturnIn an official statement, cryptocurrency exchange Binance unveiled its plans to implement updates to its zero-fee Bitcoin tra
Circle to cease minting USDC on Tron Network effective immediately
Jesse Coghlan2 hours agoCircle to cease minting USDC on Tron Network effective immediatelyThe U.S.-based stablecoin issuer said it would discontinue minting USDC on the Tron network “to ensure that USDC remains trusted
Memecoin madness is breaking the Bitcoin halving cycle
Martin Young5 hours agoMemecoin madness is breaking the Bitcoin halving cycleLiquidity seems to have skipped a few steps and gone from Bitcoin straight into memecoins amid a “weird” bull market, say observers.6704 To
Bitcoin Bulls Face Make-Or-Break Moment At $106,500 Resistance – Details
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Fintech Firm Revolut Pays for Dallas-Based Wework Workspace With Bitcoin
Fintech Firm Revolut Pays for Dallas-Based Wework Workspace With Bitcoin The cryptocurrency-infused financial tech company Revolut has announced it has purchased a Wework office wi
More crypto AI alliances emerge following $7.5B token merger
Zhiyuan Sun6 hours agoMore crypto AI alliances emerge following $7.5B token mergerMany crypto projects have integrated AI as part of their everyday routine since the introduction of LLMs last year.1300 Total views7 Total