March 27, 2024
Central Banks Should Take The Helm in CBDC Development
Latest Cryptocurrency News

Central Banks Should Take The Helm in CBDC Development

Central banks have a responsibility to stay ahead of the curve and spearhead innovation in the digital age, according to Agustín Carstens, General Manager of the Bank for International Settlements (BIS).

Speaking at a conference in Basel, Switzerland, on November 8, Carstens identified central bank digital currencies (CBDCs) as the “crux” of this leadership role, highlighting the potential risks and challenges associated with their implementation.

One significant challenge is the diversity of technological infrastructures that different countries plan to employ for their CBDC projects. Carstens also raised concerns about cybersecurity threats and the emergence of new avenues for “criminal activities by unscrupulous actors.”

Addressing the priorities in adapting CBDCs to potential threats, the official emphasized the importance of flexible design as the top priority, but also acknowledged privacy concerns:

“Maintaining an appropriate level of privacy, for instance, will be essential to ensuring public acceptance of retail CBDCs.”

Carstens reaffirmed BIS’s commitment to supporting central banks in their digital transformation endeavors. This support primarily stems from the BIS Innovation Hub and Cyber Resilience Coordination Centre.

The Innovation Hub has been particularly active, engaging in numerous digital currency initiatives. It is assisting the Swiss National Bank in developing a wholesale CBDC, collaborating with the central monetary authorities of China, Hong Kong, Thailand, and the United Arab Emirates to build a joint platform, and working with the European Central Bank to create a proof-of-concept for a transactions tracker, among other projects.

Image by pch.vector on Freepik

Related posts

Crafting Worlds: Inside Avalon’s Ambitious Metaverse Game Led by Gaming Veterans

Cheryl  Lee

Hong Kong’s OSL Crypto Platform: Sale Rumors Debunked, but What Lies Ahead?

Cheryl  Lee

Valkyrie Unveils 2x Leverage Bitcoin Futures Fund

Eva Moore

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More