BIS Indicates Central Banks to Start Work on CBDCs

The head of BIS suggests to the Central banks to be ready with the CBDCs development to beat the challenges like StableCoins pegged with fiat currencies. 

A week ago, BIS announced that they are working with the central banks in Singapore, South Africa, Australia and Malaysia on the trials of Central Bank Digital Currency to check the efficiency for cross border payments. Now BIS suggested to all Central banks to remain ready for the future.

Read also: Australia, Singapore, Malaysia and South Africa launch joint CBDC pilot trial

The head of the BIS Innovation Hub, Benoît Cœuré, speaking on the  Eurofi Financial Forum in Ljubljana, Slovenia, on Friday, said that Central Bank money will evolve with the central bank digital currency in future. And all the central banks should be ready for this. 

“Central bank money will have to evolve to be fit for the digital future”

Further, Cœuré explained about the Central Bank Digital Currency necessity and said that there are big challenges for them like StableCoins and Defi platforms which can replace traditional finance. 

“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 crypto assets are already here. This makes it even more urgent to start”

 Benoît  also said that these developments should be done fastly and it will be possible with different regulatory questions that need fast and consistent response. And Central banks should make themselves better from the point of delivering price and financial stability. 

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