Digital Cash Demands Trigger Evolution of Global Monetary Landscape
The head of the Bank for International Settlements (BIS), Agustín Carstens, acknowledges the evolving global monetary system and emphasizes the importance of preparing central bank digital currencies (CBDCs) for widespread adoption.
He underscores the responsibility of central banks in establishing a robust legal framework for CBDCs, focusing on legitimacy, privacy, integrity, and user choice.
Carstens recognizes the current functionality of the monetary system based on physical cash and commercial bank money but emphasizes the necessity for adaptation. He notes the decline in traditional cash usage and the growing demand for innovative digital forms of money.
People seek digital, programmable currencies that enable fast, cost-effective, and secure cross-border transactions.
CBDCs are viewed as promising advancements, and Carstens emphasizes the importance of safeguarding individual privacy and preferences. He advocates for global collaboration to create an interconnected and interoperable digital system, ensuring privacy, financial stability, and user choice.
The BIS is committed to supporting ongoing efforts in this domain and providing a platform for critical dialogues.
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Legal initiatives led by the BIS Innovation Hub are advancing, and global cooperation is essential to prevent fragmented systems and diverse legal structures among digital currencies.
Carstens, a vocal critic of cryptocurrencies, including stablecoins, asserts that they do not meet the criteria for “money” and should not serve as the next phase of the financial system due to their lack of centralized banking institution backing.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
