Central banks are planning to launch digital coins

Central banks are planning to launch digital coins

Agustin Carstens, head of the International Settlement Bank (BIS), admitted that central banks will probably have to issue their own digital coins soon. The BIS is considered the central bank of the central banks and has once been a critic of cryptomonas.

The attitude of the organization has changed lately, claiming the usefulness of so-called CBDCs – digital coins issued by central banks.

Carstens told the Financial Times that the BIS supports central bank efforts to research and develop coins based on national currencies.

Apparently, a number of central banks are currently working to develop such projects. In addition, Carstens pointed out that there is public demand for digital coins to be issued as soon as possible.

“There is market demand and we need to be able to deliver the central bank’s digital currencies faster than we originally planned,”

the BIS representative said.

Criptomoneda Libra Facebook, a hit for central banks

Carstens’s comments were made as soon as Facebook revealed his cryptomonas Libra launch plans. The subject immediately attracted the attention of the media and public institutions, which considered it a threat to the central banks. The prospect of a billion-dollar technology company entering the financial market is an alarm signal for state currencies.

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For example, the Finance Minister of France said that the Libra should not be allowed to become a sovereign currency.

In the US, Congress called on Facebook to stop the development of the Libra network until hearings.

Even BIS mentioned the Facebook project in its latest annual report. Analysts have voiced concern that initiatives such as the Libra are a long-term threat to central bank control over money:

“Regulators must ensure a fair competition environment between major technology companies and banks. They have to take into account the large user base that these companies have, access to information and large business models. “

Carstens approached Facebook again and in the Financial Times interview:

“The problem is how will the currency be used? Will there be disclosure of information or data that can be used to provide credit and how privacy is protected? “

He also mentioned that the most urgent issue to be addressed when it comes to cryptomonas is money laundering.

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