The Bank for International Settlements, which serves as a โbank for central banks,โ released its latest paper examining retail monetaryย authority digitalย currencies, as its members โare approaching a pointโ as to whether or not they should move forward in their CBDC work.
Central banks representing Canada, Europe, Japan, Sweden, Switzerland, England and the Unitedย States are working to explore CBDCs for retail use.
Retail CBDCs, as opposed to wholesale CBDCs, would be used by the general public.ย
Theย team of central banks 1st wasย releasedย a paper in October 2020 laying out the principles and on Thursday released a paper wasย known โ Monetaryย authority digital currencies: ongoing policy perspectives.โย
The Bank for International Settlements, or BIS, supports central banks in part by promoting monetary and financial stability, and is owned by 63 central banks representing 95 % of the worldโs gross domestic product.ย
The central banks listed on the report stated its jurisdictions are looking into whether thereย is a must โ secure ongoing retail access to monetaryย authority money at a time of profound, ongoing changes across finance, technology and society.โ
โThe motivation for introducing a retail CBDC may rest primarily on the role of monetaryย authority money as a public good,โ they stated in the report. โ Simultaneously, the introduction of a CBDC mayย be an innovative opportunity for the monetary system.โ
Several of their members are getting to a point where they are deciding whether or not to move onto theย following stage of their CBDC work, the banks said.ย
Private innovation couldย be a must
The 7 central banks listed on the report stated they see private innovation as an important factor for the longstanding in creating CBDCs.ย
โLegislators and authorities will must remain engaged as work on CBDC progresses. The development of solutions to some of the outstanding legal issues related to CBDC will largely be a matter of national law and will tend to be highly dependent on policy choices and the design of a CBDC.โย
