- AgustÃn Carstens from BIS dwells upon the idea of CBDC.
- BIS acknowledges the need for cryptocurrency regulation.
The head of general manager of the Bank for International Settlements (BIS) AgustÃn Carstens believes that central banks’ digital currencies (CBDC) may become a reality sooner rather than later.
“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 the recent interview with the Financial Times.
Many global central bankers have been cautious about digital currencies. They view them as speculative and risky instruments that may be used for money laundering and tax evasion purposes. However, the attitude is changing as a number of central banks are working on their own CBDC.
Meanwhile, the central banks’ interest in digital currencies will depend on the developments on the market, Mr. Carstens noted. He offered to start dealing with the new type of money by creating anti-money laundering rules for them as it is the most pressing issue.
“There needs to be evidence for the demand for central bank digital currencies and it is not clear that the demand is there yet. Perhaps people can do what they want by using electronic wallets provided by banks or fintech companies. It depends on the development of payment systems,” he added.
Recently, BIS published a report, where it addressed the digital currencies, saying that coins created by tech giants may pose a threat to the whole system as they may “rapidly establish a dominant position” in global finance.
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