The Bank for International Settlements (BIS), often called the central bank to the world’s central banks, has given its full backing to the development of central bank digital currencies (CBDCs).
<h2><strong>BIS Latest Report Includes a Chapter on Central Bank Digital Currencies</strong></h2>
The Bank for International Settlements (BIS), which acts as a bank to the world’s central banks published an extensive <a href="https://www.bis.org/publ/arpdf/ar2021e3.pdf" target="_blank" rel="nofollow noopener">report </a>on 23rd June on central bank digital currencies (CBDCs).

As part of a chapter from its annual report, the BIS highlighted the importance of launching CBDCs with a condemnation of cryptocurrencies and private digital money backed by large technology firms that <em>“tend to work against the public good element that underpins the payment system.”</em>

Per the report, CBDCs would function best as part of a two-tier system where the central bank would operate the core of the system, while the private sector, such as banks and payment service providers, would develop innovative use cases to serve customers.

Central banks are better at dealing with price stability, data ownership, and accessibility issues that will inevitably arise as digital payments become more widespread argued BIS.
<h2><strong>BIS Not Friendly Towards Crypto</strong></h2>
Unlike cryptocurrencies, <a href="https://www.cryptoknowmics.com/news/are-central-bank-digital-currencies-cbdcs-modeled-the-same-way-as-cryptocurrencies/">CBDCs</a> would likely be held in accounts tied to digital identities, meaning that payments would not be anonymous while protecting the payment system against money laundering and financial crime.

Previously, the BIS had argued against bitcoin and other cryptocurrencies dismissing them as speculative assets and a poor means of payment owing due to their price volatility, slow transaction times, and high energy usage.

At the same time, Head of research and economic advisor Hyun Song Shin, dismisses the role of <a href="https://www.cryptoknowmics.com/news/top-cryptocurrencies-to-buy-and-hold-in-2021/">cryptocurrencies</a>, in the report, saying:

<i>"By now, it is clear that cryptocurrencies are speculative assets rather than money, and in many cases are used to facilitate money laundering, ransomware attacks, and other financial crimes. Bitcoin, in particular, has few redeeming public interest attributes when also considering its wasteful energy footprint."</i>

BIS Gives Full Support to Central Bank Digital Currencies in its Report

The Bank for International Settlements (BIS) has given its full backing to the development of central bank digital currencies (CBDCs).

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.

BIS Gives Full Support to Central Bank Digital Currencies in its Report

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