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- The central banks of the Bahamas, Canada, China, the Eastern Caribbean, Ghana, Malaysia, the Philippines, Ukraine, and Uruguay were discussed in the article. The World Bank was also a participant in the study. The BIS has adopted a firm stance on the central bank’s role in the expanding digital economy, as well as the need for cryptocurrency regulation.
- The importance of stakeholder education and acceptability, both among customers and service providers, was underlined by all of the central banks. Data privacy, as well as the linked issues of money laundering and terrorism financing, were identified as major challenges. A priority was also set for serving the vulnerable, such as children, the elderly, and people with disabilities.
- While some constraints, such as geographical isolation and digitalization levels, differed in degree among the central banks, several CBDC design aspects were cited as critical to financial inclusion across the board. In this regard, features such as the promotion of a two-tiered payment system with private-sector participation, interoperability across numerous functions and borders, and proper regulation were mentioned.
Researchers from the BIS and the World Bank have identified common elements among nine central banks that are dealing with a variety of issues. The Bank for International Settlements (BIS) published a study on central bank digital currencies, or CBDCs, on Tuesday, outlining how they might be used to achieve policy goals for financial inclusion. Interviews with nine central banks that are currently investigating retail CBDCs were conducted in the second half of last year for the report.
The Importance Of Stakeholder Education And Acceptability
It looked at similar aims and impediments to inclusion across a range of economic development levels. CBDC is approached in two ways, according to the paper. The digital currency was seen as a spur for innovation and development by some central banks, while it was seen as a complement to current programmes by others. The importance of stakeholder education and acceptability, both among customers and service providers, was underlined by all of the central banks. Data privacy, as well as the linked issues of money laundering and terrorism financing, were identified as major challenges. A priority was also set for serving the vulnerable, such as children, the elderly, and people with disabilities.
The Promotion Of A Two-Tiered Payment System With Private Sector Participation
While some constraints, such as geographical isolation and digitalization levels, differed in degree among the central banks, several CBDC design aspects were cited as critical to financial inclusion across the board. In this regard, features such as the promotion of a two-tiered payment system with private-sector participation, interoperability across numerous functions and borders, and proper regulation were mentioned.
The central banks of the Bahamas, Canada, China, the Eastern Caribbean, Ghana, Malaysia, the Philippines, Ukraine, and Uruguay were discussed in the article. The World Bank was also a participant in the study. The BIS has adopted a firm stance on the central bank’s role in the expanding digital economy, as well as the need for cryptocurrency regulation. It recently completed a successful pilot project with the central banks of Australia, Malaysia, Singapore, and South Africa dubbed Project Dunbar to build an international settlements platform.
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Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
