BIS Chief: Legal Frameworks Must Transform to Facilitate CBDCs
Agustín Carstens, General Manager of the Bank of International Settlements (BIS), asserts that outdated legal frameworks are impeding the issuance of much-needed Central Bank Digital Currencies (CBDCs).
During a speech in Switzerland, Carstens emphasized the advantages of CBDCs for the global economy and urged world leaders to adapt their laws to accommodate them. He pointed out that people desire digital and programmable money, along with quick, affordable, and secure cross-border transfers. Carstens argued that cryptocurrencies like Bitcoin lack essential elements of money, such as central bank backing, while stablecoins may not guarantee stability.
He highlighted the potential of wholesale and retail CBDCs for automation, risk mitigation, financial inclusion, and faster cross-border payments. Carstens called for addressing unclear or outdated legal frameworks that hinder CBDC deployment and emphasized the importance of privacy in CBDC legal frameworks. He noted that CBDC issuance is a jurisdictional decision but urged against a fragmented system that hampers interoperability among digital currencies.
Clever Robot News Desk 28th September 2023
