Bank for International Settlements supported Libra project

The Bank for International Settlements (BIS), which regulates and coordinates the work of the Central Banks of 60 developed countries,called for cross-border payments tostablecoins for outsourcing. The BIS position is justified by the fact that states alone will not be able to arrange cross-border payments of issued digital sovereign currencies CBDC.

The first stablecoin was released by Tether, which linked tokens to the Bitcoin blockchain through the Omni second-level protocol.

Now Tether USD releases on 8 blockchains,The largest issue is deployed on Ethereum, in terms of capitalization USDT takes third place. Central banks cannot use the public blockchain, so they will have to build their own infrastructure. According to BIS research, the cost of equipment and support for cross-border payments is not calculable, but it is unbearable for a single state, including China and the USA.

Creating a Forex Digital Market Will Take Effortsall countries, at least the Big Twenty. BIS experts note that even in this case, the system will not give the necessary speed of transfers, and, therefore, will not be able to replace SWIFT and other traditional cross-border networks.

In addition to costs, there is such an important thing aspayment security. Any bug, a successful hacker attack can result in the loss of a global reputation for a state or, even worse, an international payment system.

BIS states in the report that in the near futureYou cannot create a flawless and reliable cross-border payment blockchain. The world economy in the face of losses incurred by the coronavirus pandemic needs fast and cheap digital payments. These problems can be solved by commercial projects on the launch of stablecoins.

It is much easier for central banks to develop legalthe basis for regulating projects like Libra, which are able to solve the problem of cross-border transfers of stablecoins right now. BIS will uphold this position at the G20 Summit in October.

The Libra Association is the idea of ​​Facebook,who developed the blockchain for six stablecoins of major currencies. The Libra token, tied to a basket of these currencies, provoked enormous opposition from the US Congress and the EU. They considered that the distribution of stablecoins and tokens in the social network with 2 billion users would destroy the instruments of monetary policy of the states.

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