Featured Product

    BIS and Central Banks Report on Progress Made in Area of CBDCs

    September 30, 2021

    The Bank for International Settlements (BIS) and seven central banks are taking forward their work on retail central bank digital currencies (CBDCs) and analyzing policy options and practical implementation issues related to CBDCs. The seven central banks are Bank of Canada, Bank of England, Bank of Japan, European Central Bank, U.S. Federal Reserve Bank, Sveriges Riksbank, and Swiss National Bank. In this context, BIS published three reports that look into user needs and adoption, technological design options, and financial stability implications of retail or "general purpose" CBDCs. BIS and the central banks acknowledge the challenges associated with CBDCs while noting that operating CBDC ecosystem functions would be a significant undertaking and any outsourced functions would need to be carefully managed to deliver public trust in a CBDC system.

    The first report on user needs and adoption explores how private-public collaboration and interoperability can be designed into CBDC systems to achieve this objective. Developing and running a CBDC system would be a major undertaking for any central bank. In particular, policies about privacy and access to payment data would be the key design elements to maintain public trust. The second report on design options focuses on how a CBDC could best serve people and businesses in a fast-changing technological landscape. Lessons from previous payment innovations compiled in the report show that success often requires harnessing network effects and not requiring users to obtain new devices. Nonetheless, there would not be a "one-size-fits-all" solution and CBDC adoption strategies would need to consider multiple perspectives through public consultations. The third report on financial stability implications outlines the possible impact of CBDC issuance on banking systems, in terms of intermediation capacity and overall resilience. Preliminary analysis highlights the importance of allowing the financial system time to adjust and the flexibility to use safeguards to influence CBDC adoption. Trusted and resilient money is a precondition for monetary and financial stability.

    BIS and the central banks have also outlined the next steps in this collaboration, noting that this group will:

    • Continue its practical policy and technical analysis, exploring the intersections between the three papers published and common areas of interest in CBDC research
    • Continue to contribute to other complementary international work on CBDCs and the future of payments, including the G7 Digital Payments stream, the G20 cross-border payments roadmap, the CPMI Future of Payments Working Group, and the IMF work on digital money
    • Share insights of their work with other central banks, strengthen outreach and dialog, domestically and internationally, and foster an open and informed dialog on CBDC in their respective jurisdictions

     

    Related Links

    Keywords: International, Banking, CBDC, Digital Currencies, Central Banks, CDC Ecosystem, Cross-Border Cooperation, BIS

    Related Articles
    News

    APRA Publishes Results of Climate Risk Self-Assessment Survey

    The Australian Prudential Regulation Authority (APRA) has published the findings of its latest climate risk self-assessment survey conducted across the banking, insurance, and superannuation industries.

    August 04, 2022 WebPage Regulatory News
    News

    ACPR Publishes Updates Related to CRD IV and Covered Bonds

    The French Prudential Supervisory Authority (ACPR) published a notice related to the methods for calculating and publishing prudential ratios under the Capital Requirements Directive (CRD IV) and the minimum requirement for own funds and eligible liabilities (MREL).

    August 03, 2022 WebPage Regulatory News
    News

    BIS Paper Contributes to Debate on Regulating NBFIs and Big Techs

    The Financial Stability Institute (FSI) of the Bank for International Settlements recently published a paper proposing a framework for classifying financial stability regulation as either entity-based or activity-based.

    August 03, 2022 WebPage Regulatory News
    News

    EIOPA Publishes Guidance on Climate Change Scenarios in ORSA

    The European Insurance and Occupational Pension Authority (EIOPA) published the risk dashboard based on Solvency II data and the final version of the application guidance on climate change materiality assessments and climate change scenarios in the Own Risk and Solvency Assessment (ORSA).

    August 02, 2022 WebPage Regulatory News
    News

    EBA and ECB Respond to Proposals on Sustainability Disclosures

    The European Banking Authority (EBA) and the European Central Bank (ECB) published their responses to the consultations of the International Sustainability Standards Board (ISSB) and the European Financial Reporting Advisory Group (EFRAG) on sustainability-related disclosure standards.

    August 01, 2022 WebPage Regulatory News
    News

    BIS Report Notes Existing Gaps in Climate Risk Data at Central Banks

    A Consultative Group on Risk Management (CGRM) at the Bank for International Settlements (BIS) published a report that examines incorporation of climate risks into the international reserve management framework.

    July 29, 2022 WebPage Regulatory News
    News

    EBA Publishes Multiple Regulatory Updates for Regulated Entities

    The European Banking Authority (EBA) published the final guidelines on liquidity requirements exemption for investment firms, updated version of its 5.2 filing rules document for supervisory reporting, and Single Rulebook Question and Answer (Q&A) updates in July 2022.

    July 29, 2022 WebPage Regulatory News
    News

    EIOPA Issues SII Taxonomy and Guide on Sustainability Preferences

    The European Insurance and Occupational Pensions Authority (EIOPA) published Version 2.8.0 of the Solvency II data point model (DPM) and XBRL taxonomy.

    July 29, 2022 WebPage Regulatory News
    News

    EESC Opines on Proposals on CRR and European Single Access Point

    The European Union published, in the Official Journal of the European Union, an opinion from the European Economic and Social Committee (EESC); the opinion is on the proposal for a regulation to amend the Capital Requirements Regulation (CRR).

    July 29, 2022 WebPage Regulatory News
    News

    HM Treasury Publishes Multiple Regulatory Updates in July 2022

    HM Treasury published a draft statutory instrument titled “The Financial Services (Miscellaneous Amendments) (EU Exit) Regulations 2022,” along with the related explanatory memorandum and impact assessment.

    July 29, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8423