HomeCBDCDigital Pound UpdatesExploring the Concept of a Retail CBDC: Collaboration Between Central Banks and...

Exploring the Concept of a Retail CBDC: Collaboration Between Central Banks and the BIS

The main conclusions of a new set of reports issued by seven central banks and the Bank for International Settlements (BIS) are that for central bank digital currencies (CBDC) to work effectively, public and private institutions need to cooperate. This cooperation is necessary to ensure integration with existing payments systems, anticipate customers’ future needs, and support innovation while preserving public trust, privacy, and stability in the broader financial system. The group formed by Bank of Canada, Bank of England, Bank of Japan, European Central Bank, Federal Reserve, Sveriges Riksbank, Swiss National Bank, and BIS has turned to practical policy and implementation issues related to retail or “general purpose” CBDCs. Although none of these central banks has decided to proceed with a retail CBDC, they believe that continuing to work on the topic is crucial due to its wide-ranging implications. Delivering on the future needs of consumers would require CBDC systems that encourage innovation, choice, and competition among a diverse mix of intermediaries. The first report explores how private-public collaboration and interoperability can be designed into CBDC systems to achieve this objective. Developing and running a CBDC system would be a major undertaking for any central bank, with policies about privacy and access to payment data being key design elements to maintain public trust.

Read more

PHP Code Snippets Powered By : XYZScripts.com