Benoît Cœuré, head of the Bank of International Settlements (BIS) innovation center, called on central banks to accelerate the development of central bank digital currencies (CBDCs) in order to compete with private sector initiatives. “The implementation of the CBDC will take years, while the crypto assets are already here,” he said.
The BIS calls central banks to accelerate the development of the CBDC
Benoît Cœuré, head of the innovation center, spoke about the central bank’s digital currencies (CBDC) at the Eurofi financial forum in Ljubljana. He called on central banks to urgently develop CBDCs that could compete with private sector payment initiatives.
“Today, the financial system is changing at our hands,” he explained. “Large technology companies are involved in retail payments. Stablecoins knock on doors and seek regulatory approval. Decentralized finance platforms (defi) are a challenge for traditional financial intermediation. They all come up with a variety of regulatory questions that require quick and consistent answers. “
He stated that “the CBDC will be part of the response. A well-designed CBDC will be a secure and neutral means of payment and settlement and will serve as a common interoperable platform around which a new payment ecosystem can be formed. “
The BIS official added: “This will allow for an open financial architecture that is integrated while welcoming competition and innovation. And it will maintain democratic control of the currency. “
“It’s time for central banks to add. We should roll up our sleeves and speed up work on good CBDC design. The implementation of CBDC will take years, while stablecoins and crypto assets are already here. It’s all the more urgent to start. ”
Cœuré explained that the BIS Innovation Center is helping central banks develop CBDC. “Six CBDC-related concepts and prototypes and many more are already being developed in our centers,” he said.
Cœuré added: “The goal of CBDC is ultimately to preserve the best elements of our current systems while leaving a safe space for tomorrow’s innovation. But the central banks must act on this as long as the current system is still in order – and act now. “
According to the CBDC tracker of the Atlantic Council, 81 central banks are currently examining their own digital currencies. Among them, five have been launched, 14 are in pilot phases of testing, 16 are in development and 32 are in investigative phases.
Among the central banks currently studying CBDC is the European Central Bank (ECB), which recently announced the official launch of a two-year investigative phase. “Once the phase is over, we will decide whether to start developing the digital euro,” the bank said.