BIS calls on countries to create a legal framework for CBDC

BIS-min
BIS-min

The Bank for International Settlements (BIS) has asked all governments to create a regulatory framework for the implementation of central bank digital currencies (CBDC). This was stated by the head of the organization, Agustin Carstens, at the BISIH-FSI conference, The Block reports.

Carstens warned that outdated legal frameworks in various jurisdictions could hinder the development of the technology.

“Work to address these problems must begin in earnest. And it must go at a fast pace,” he emphasized.

According to him, central banks are now actively exploring CBDC to stimulate innovation, but cannot achieve the desired transformation alone.

The BIS Chairman referred to the document IMF from 2021, according to which almost 80% of all central banks either cannot issue digital currency based on current laws, or have vague legal restrictions.

At the same time, the BIS survey showed that 93% of central banks are at various stages of CBDC development. Such data suggests that the legal system lags behind new technologies, Carstens noted.

He also called on countries to create laws for the new form of money that are as compatible as possible with other jurisdictions.

“It would be unfortunate if we ended up with a fragmented system and legal framework in which different digital currencies do not interact with each other,” Carstens added.

In his opinion, such legislation should strike a balance between protecting the user and maintaining the integrity of the financial system.

Speaking about reducing the use of cash, the BIS chief pointed out that cryptocurrencies and stablecoins are “fueling the demand for change”, but rejected any intrinsic value.

“Even “stable coins” do not guarantee stable value. They do not and cannot meet the standards that the public expects from money,” concluded Agustin Carstens.

Let us recall that BIS experts called CBDC the basis of the monetary systems of the future. According to experts, other digital assets are a wrong path to tokenization.

Previously, IMF specialists admitted that banning digital assets is not the best way to reduce the risks associated with them.

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