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- Recently, the Bank for International Settlements (BIS) has revealed in its exclusive report that the central bank digital currency (CBDC) has the potential to break the currency market.
- As per the annual economic report that was released on June 25. The central bank organization stated that CBDC might bring a big change.
- A year ago, BIS surveyed 63 national banks. Finding that 70% are presently, or soon will be, occupied with CBDC work.
Recently, the Bank for International Settlements (BIS) has revealed in its exclusive report that the central bank digital currency (CBDC) has the potential to break the currency market for the governments across the world.
CBDC to Bring Major Shift
As per the annual economic report that was released on June 25. The central bank organization stated that CBDC might bring a big change. However, CBDC will offer a new, secured, trustworthy, and broadly used digital payment technique, which has an exceptionally wider development prospect.
One noteworthy way by which the BIS is hoping to innovate is through the investigation of CBDCs. A year ago, BIS surveyed 63 national banks, finding that 70% are presently, or soon will be, occupied with CBDC work. After that, Canada, Italy, and Thailand, among others, have taken a significant move on the issue.
Countries are adopting digital currencies during the pandemic scenario
Besides this, Benoît Cœuré, the head of BIS Innovation Hub, notified that central banks are increasing their efforts. In order to examine CBDCs. Whether wholesale or retail, the objective is to make safe and reliable settlement instruments transacting in the digital economy.
The BIS report indicated that that the COVID-19 pandemic may also quicken the transition of several countries to digital transactions. The report also highlighted that the government interest in CBDC isn’t any interest in cryptocurrency or stable currencies such as Facebook’s Libra.
Moreover, some central banks are as yet vigilant about digital currencies. In March 2020, Bank of England Governor Mark Carney said that CBDC might bring some noteworthy challenges to governments.
As per the Chamber of Digital Commerce, a pioneering organization dedicated to digital currencies. The US lawmakers must have an understanding of digital currencies and the technology behind them.
