Agustin Carstens, the General Manager of Bank of International Settlement (BIS) who earlier believed Central Bank issued Digital currencies (CBDCs) were no good, has changed his stance. In his recent speech titled “The future of money and the payment system: what role for central banks?” Carstens seemed to emphasize that CBDC's could open the gates for new opportunities.
In his speech publisher on 5th December, Carstens focused on the approach of central banks towards emerging technologies of blockchain and fintech.
CBDs could Pave way for the Future Financial System
The General Manager's change of views is a great sign for the future of the payment systems as it shows that these banks have started to consider the inclusion of DLT based currencies. Carstens noted several advantages of the coming of CBDC's as it provides a greater level of privacy, is considerably faster, cheaper and available for 24*7 round the clock.
2019 has seen a great rise in the level of crypto awareness and adoption, where several nations are pondering their decision on regulating crypto in the right way. Many analysts have also claimed that stable coins and CBDC's are going to be the main pathway for crypto adoption. While China is all set to launch its national CBDC many other nations are pondering on the same decision as France and Ghana.
Carstens was not a Big Fan of CBDCs
Only this March, Carstens was not a very big fan of digital currencies issued by central banks and also advised against issuing such currencies. He argued that the digital currency would bring down commercial banking systems as people would transfer all their funds to these central banks for better services. He said,
“Central banks do not put a brake on innovations just for the sake of it. But neither should they speed ahead disregarding all traffic conditions.”