Effective CBDCs should involve public and private actors, says BIS

New investigation report on the central bank digital currency by the BIS along with other global Central banks claimed that CBDCs should involve public & private actors together to ensure the interoperability.

In the present time adoption of blockchain technology is at tremendous level. At one side Central banks are doing development on the Central Bank Digital Currency (CBDCs), on other side fintech firms are developing cross chain platforms to ensure the interoperability of the future blockchain ecosystem and network. And here it is a big concern of the blockchain researchers, because they want to see the CBDCs ecosystem fully compatible with the traditional financial system.

Read also: VISA Unveils UPC Platform For CBDCs & Stablecoins Transactions

The Bank for International Settlements (BIS) reported a research on CBDCs in October 2020, and talked about the features that are needed with the central bank digital currency ( CBDCs).

Now in the latest, BIS released an investigation on CBDCs on 30th September. BIS investigated CBDCs in collaboration with the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the United States Federal Reserve, Sveriges Riksbank and the Swiss National Bank.

According to the published research report of BIS, CBDCs should have that type of features and ecosystem that should have better interoperability and adoption with better financial stability.

The one most important thing that outlined in the report is, design and working of CBDCs system would “need to involve both public and private actors to ensure interoperability and coexistence with the broader payment system.”

Here it is worth to note that, interoperability is a bigger need of the future because government authorities are taking StableCoins more seriously because they are following many rules and law but on the other hand they have issues which are not easy to solve. In recent month, we saw that the federal reserve decided to aquire USDC as a federal reserve CBDCs. So clearly here all private StableCoins and CBDCs & also traditional financial services needed a better integration, so that adoption can be done more easily without any degradation of a particular part of financial infrastructure, best example of this effort can be seen by the Visa firm’s UPC development work.

Read also: Independent Reserve and DBS got crypto license from Singapore’s MAS Authority