Agustin Carstens, the General Director of Bank for International Settlements (BIS), made statements regarding Central Bank Digital Currencies (CBDCs) at a conference held in Switzerland today. Carstens expressed that it is unacceptable for unclear or outdated legal frameworks to hinder the use of CBDCs, and that countries’ authorized institutions should establish legal frameworks that support CBDCs.
Statement on CBDCs from the BIS General Director
Agustin Carstens, the General Director of the Bank for International Settlements (BIS), made statements at a conference held in Switzerland today. Carstens also touched upon Central Bank Digital Currencies (CBDCs), which are at the center of discussions, in his speech.
In a research report published in 2020, the International Monetary Fund (IMF) stated that about 80% of central banks cannot issue CBDCs under current laws and that many countries do not have adequate legal frameworks. Highlighting the inadequacy of existing legal regulations, BIS General Director Carstens stated that unclear or outdated legal regulations hinder the use of CBDCs.
Carstens stated that it is unacceptable for existing regulations to hinder the use of CBDCs. Additionally, Carstens emphasized that countries should establish legal frameworks that support the use of central bank digital currencies.
Although Carstens called for regulation on CBDCs, he has made numerous negative statements about cryptocurrencies in the past. In 2018, the BIS General Director made statements against Bitcoin, stating that cryptocurrencies do not possess the qualities to be considered as currency.
Anti-CBDC Bill Passes Financial Services Committee
Central banks of many countries have recently started conducting various research on CBDCs and initiating the necessary work to address the potential benefits and risks of CBDCs. A survey conducted by the BIS in 2022 revealed that 93% of central banks have started working on CBDCs.
However, CBDCs have become a significant topic of debate in recent times. An important development regarding central bank digital currencies also occurred in the United States. Recently, an anti-CBDC bill passed the Financial Services Committee of the US House of Representatives and was presented to the House with a positive report. If approved by the House, the bill will be voted on in Congress.
The author of the bill, Representative Tom Emmer, who is considered anti-CBDC, also made statements regarding CBDCs. Tom Emmer claimed that CBDCs violate financial privacy and are inconsistent with American values, stating that the bill is supported by 60 members of Congress.
