“Central Bank of Central Banks” says authorities should create digital currencies ‘as soon as possible’

With the “race for CBDCs” heating up around the world, especially with Central Banks trying not to fall behind cryptocurrencies, one of the world’s largest financial authorities, the Bank for International Settlements (BSI), has further encouraged this type of development, stating that authorities and central banks need to develop digital currencies.

During a presentation at The Eurofi Financial Forum in Ljubljana on September 10, the president of the BIS, Benoit Coeuré, encouraged that authorities and central banks need to develop their own digital currencies.

He said that in order for central banks to compete with the FinTech sector and with private sector business payment initiatives, central banks need to develop CBDCs (Central Bank Digital Currency, in Portuguese).

“Today the financial system is changing right under our feet. Big companies are expanding their presence in the retail payment market. Stablecoins are knocking on the door, seeking regulatory approval. Decentralized Finance (DeFi) is challenging traditional financial intermediation. This brought up different regulatory questions that must be answered quickly and consistently.” , said Benoît.

BIS

For the president of the BIS, the CBDCs are one of the answers to these questions. He said he believes that a well-designed and developed CBDC will be a neutral and secure way to become a means of payment for this new payment ecosystem.

The BIS official also added that a CBDC will enable an open financial infrastructure that will promote integration while also benefiting competition and innovation, in addition to preserving democratic control of a currency.

“Time has passed for central banks to start moving forward. We have to roll up our sleeves and accelerate our work on developing CBDC. CBDCs will take years to launch, while stablecoins and cryptocurrencies are already here. This makes it even more urgent for us to get started with these projects.” , complemented the president of the encore.

CBDCs have been a big point of discussion between different central banks, even countries like Russia, which have a negative stance towards the cryptomarket, have already announced that they are thinking about developing their own digital currency.

Brazil is also considering the same path, with announcements since last year and discussions about the project’s development today.

With that we have a real race of central banks to try to keep their relevant currencies and compete with a technology that has been around for more than 10 years.