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BIS: « Central banks may soon issue digital currencies »

Chief executive of the Bank for International Settlements, Agustin Carstens announced his support for the central banks that are working to issue a digital currency.

Known for his highly critical position on crypto-currencies, including Bitcoin, Carstens recently said that « the situation could evolve faster than we thought,” while indicating that his institution “supported the efforts of central banks to create digital versions of the state currencies ».

« Many central banks are working on it; we are working on it, supporting them, and it might be that it is sooner than we think that there is a market and we need to be able to provide central bank digital currencies », he said in an interview with FinancialTimes.

In the fall of 2018, Carstens stated that crypto-investors « are buying into nothing more than a software algorithm ” and that « no cryptocurrency is a true unit of account or a payment instrument ».

For months now, a number of central banks have been working on the project. In April 2019, the World Economic Forum (WEF) reported that at least 40 central banks around the world were conducting research on central bank digital currencies (CBDCs).

The arrival of Facebook and its future digital token Libra, frighten the central bankers. A recent BIS report states that coins supported by technology giants could « quickly establish a dominant position in global finance and be a potential threat to competition, stability and social well-being ».

 

 

2019-07-02T08:37:15+00:00July 2nd, 2019|