WEB BIS Innovation Hub Speech
Benoit Coeure on Central Bank Digital Currencies
September 10, 2021
Benoit Coeure, head of innovation hub at the Bank for International Settlements (BIS), spoke at the Eurofi Financial Forum Ljubljana on Friday about Central Bank Digital Currencies (CBDCs). He emphasized the need for a global framework for regulating cryptocurrencies and called on financial regulators to collaborate in this endeavor.
Coeure highlighted the rapid growth of cryptocurrencies and their increasing mainstream adoption. He noted that central banks are paying close attention to this trend and are exploring the potential of issuing their own CBDCs.
He stated that the BIS is working on a proof-of-concept trial of a CBDC in collaboration with the Swiss central bank. The trial is expected to begin in 2020 and will help to inform the development of future CBDC initiatives.
Coeure's speech comes amid growing interest in CBDCs from central banks around the world. Several countries, including China, Sweden, and the Bahamas, are already piloting or implementing CBDCs.
The development of CBDCs has the potential to revolutionize the financial system. They could make payments faster, cheaper, and more secure. They could also help to promote financial inclusion by providing access to banking services for the unbanked.
However, the development of CBDCs also raises a number of challenges. These include ensuring that they are secure, efficient, and do not disrupt the existing financial system.
Coeure's speech is a timely contribution to the debate on CBDCs. He provides a clear and concise overview of the current state of play and highlights the key challenges that need to be addressed.
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