BIS named what it takes to succeed at CBDC

The Bank for International Settlements(BIS) has talked about the possibility of a global Stablecoin.

The Bank for International Settlements (BIS) released a study titled: “The Interoperability Agreement of Various CBDCs and the Future of Global Payments.” According to experts of the Bank for International Settlements, which develops recommendations for the work of central banks in several countries, “the current system for organizing transactions at the global level is inefficient, and technology could play a role in improving the situation.

In particular, we are talking about CBDC, the digital currency. Sand Dollar, a digital asset in the Bahamas, is known to have been launched in October 2020, and the digital yuan (DC/EP) continues to be tested extensively within China.

BIS expects that there will be more countries whose central banks will also start testing/launching their CBDCs. In such a development, there will be a question of interaction between the various CBDCs. Experts emphasize that CBDCs will need to compete with those private steblecoins that exist in the world now. Moreover, it is possible the emergence of a global steblycoin – whether it will be issued by the U.S. Federal Reserve digital dollar, another CBDC or it will be some private steblycoin – in BIS do not know yet.

In any case, BIS believes that the issuers of the various CBDCs will need to partner with each other, as that is what is needed for CBDC success and competitiveness. Such a partnership “should be coordinated by central banks to provide an efficient and convenient way to convert the various CBDCs.”

Curiously, the 23-page BIS study never mentions bitcoin, pointing to the potential of blockchain technology. For example, the authors stated that “CBDCs could be issued on a common distributed ledger, thereby leveraging economies of scale in the development of these digital assets.” Speaking of the technology, the experts emphasize that it has “opportunities and complexities,” but despite the “complexities,” launching CBDCs on a distributed ledger could have “economic potential.”