March 4, 2024

Governor, Bank for International Settlements: “CBDC opens up new opportunities for the financial sector”

Governor of the Bank for International Settlements: “CBDCs open up new opportunities for the financial sector”

The head of the Bank for International Settlements, Agustin Carstens, believes that the digital currencies of central banks (CBDC) can help create more efficient and inclusive financial systems.

In his address on the role of central banksin the future of money and payment systems, he said that the release of retail CBDCs, which will be available to the general public, including businesses and citizens, could drive significant changes in the financial sector, opening up new opportunities for 24/7 payments, varying degrees of anonymity and peer-to-peertranslations.

Agustin Carstens also noted that wholesaledigital currencies of the central bank, available only to financial institutions, can be fully compatible with the provision of settlement liquidity of the Central Bank. At the same time, they will not create complex financial problems, since their turnover will be limited to organizations that already use deposits at the Central Banks.

Having added that the retail versions, unlike the wholesale ones, can cause some difficulties, for example, related to the appointment of those responsible for compliance with the KYC and AML / CFT standards.

Soon we will be able to find out the real effectiveness of such systems, since the central banks of China, France, the UAE and Saudi Arabia have announced their intentions to issue digital currency.