The Bank for International Settlements (BIS) has published a new collaboration agreement with seven central banks to continue its investigation to create the global central bank digital currency (CBDC).
<h2>Global CBDC Bridge Necessitates Collaboration Between The Public And Private Sectors Says, BIS</h2>
The newest CBDC report from the BIS, <a href="https://www.bis.org/publ/othp42.htm" target="_blank" rel="nofollow noopener">released </a>on Thursday, alludes to collaborative efforts with the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the United States Federal Reserve, Sveriges Riksbank, and the Swiss National Bank to investigate a retail <a href="https://www.cryptoknowmics.com/news/cbdcs-can-slash-cross-border-payments-from-days-to-seconds-bis/">CBDC</a>.

The report gives an executive overview of the investigation's progress since the publishing of a study in October 2020 that identified the shared basic principles and essential elements of a CBDC. 

The BIS also issued three thorough CBDC reports on CBDC system architecture and interoperability, user demands, adoption, and the implications for financial stability.

According to the latest research, an efficient CBDC system would "need the participation of both public and private players to ensure interoperability and cohabitation with the larger payment system."

The central banks that took part in the research agreed that any CBDC ecosystem would engage both the public and commercial sectors to achieve the “desired policy outcome and enable innovation that satisfies consumers' changing payment needs.” 

According to the study, the capacity to bridge the gap between CBDCs and traditional payment methods is critical for the financial system:
“Yet a theme that cuts through almost every consideration is interoperability. Domestic interoperability would be key to ensuring a CBDC system coexists with other national payment systems and contributes to broader accessibility, resilience, and diversity.”

<h2>The Central Bank Committee Will Continue To Look Into CBDC Concerns, Will Try To Resolve Them In Different Ways</h2>
The central bank group will continue to investigate CBDC concerns and aims to broaden its global and local outreach to maintain an open and informed discourse on CBDC. 
“We are collectively sharing lessons from our work with other central banks, especially those in emerging economies,” the institutions stated.
The new joint central bank study comes on the heels of payment giant Visa launching its blockchain interoperability initiative on Thursday, to bring a “universal adapter” linking different cryptocurrencies, <a href="https://www.cryptoknowmics.com/news/stablecoins-must-be-properly-cash-backed-and-regulated-cynthia-lummis/">stablecoins</a>, and CBDCs. 

Previously, Microsoft was granted a blockchain patent for a cross-chain system that allows people and companies to generate and manage tokens across different distributed ledger networks and platforms.

Global CBDC Bridge Requires Public and Private Sector Collaboration - BIS

The BIS published a new collaboration agreement with seven central banks to continue its investigation to create the global CBDC.

Kavya Barua is a voracious learner who is fascinated by crypto and Fintech advancements. Graduated from Janki Devi Memorial College's B.A (Hons) English program at the University of Delhi. She aspires to be a successful professional, having a keen interest in learning and achieving results.

Global CBDC Bridge Requires Public and Private Sector Collaboration - BIS

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