Like the DeFi, which will have animated the debates during the year, the advent of CBDC (Central Bank Digital Currency) also caused a stir. Several central banks around the world have expressed themselves positively about the realization of this project. To this end, certain banking authorities in several countries have jointly produced a document which deals at length with this type of currency. A total of seven central banks in addition to the BIS (Bank for International Settlements) have collaborated to define the fundamental principles necessary for any CBDC. Explanations.
A report without major positions that sets no timetable
Entitled “Central Bank Digital Currencies: Fundamentals and Key Features“, This report will have gathered in particular the Bank of England, the US Federal Reserve and the Bank of Japan. The Chinese central bank, for its part, is largely absent, even though it is currently doing promoting a digital yuan. However, his non-participation in the development of the document is far from detrimental to the quality of its content. Indeed, no position taken by the participants was mentioned in the report. In other words, the document does not fix no timeline to follow in launching a CBDC or a firm plan for the production of this asset.
These various technical details should thus remain the attribute of the various central banks including those that took part in the preparation of the report. This is what Cointelegraph reports, which has collected the BIS comments on the subject. ” This report is not about whether and when to issue a CBDC. Central banks will make this decision for their jurisdictions (in consultation with governments and stakeholders). None of the central banks that contributed to this report have made a decision on whether or not to issue a CBDC “Specified the representatives of the institution.
The three fundamental principles needed
As its name suggests, the report was satisfied with ’list the necessary basic principles on which a future CDBC should be based. Three in number, they should serve the asset to better interact with the ecosystem to which it will be linked. These different principles can be summed up in the following points:
- A central bank should not jeopardize monetary or financial stability by issuing a CBDC;
- A CBDC should coexist with and complement existing forms of currency;
- A CBDC should promote innovation and efficiency.
In addition to this the essential characteristicss what a CBDC must present to exist peacefully in this environment. Essentially these are convertibility, convenience, security, speed, scalability and legal soundness.
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These various points having been fixed, the stakeholders should now work individually to take them into account when implementing their CDBC to avoid any post-launch conflict. Again, banks very cleverly avoid uttering the forbidden word… Bi… Bitcoin (BTC)?