BIS Governor: CBDC framework must ensure user privacy and freedom of currency choice

Odaily Planet Daily News Agustín Carstens, President of the Bank for International Settlements (BIS), said at the BIS Innovation Center meeting in Switzerland on September 27 that ensuring user privacy and free choice between central bank digital currency (CBDC) and other forms of currency The legal framework will be key to driving CBDC adoption. Carstens added that different countries' laws dictate the type of currency their central banks can issue, which typically includes physical cash as well as credit balances in current and reserve accounts. It also said: “According to a paper published by the IMF in 2021, nearly 80% of central banks either do not allow the issuance of digital currencies under current laws, or the legal framework is unclear.” Carstens also pointed to a study by the Bank for International Settlements, which showed that 93% of the world’s central banks are involved in developing CBDCs at various stages. Considering that most central banks are actively seeking to meet public demand for digital forms of fiat currency, Carstens said that outdated or unclear legal frameworks that hinder their deployment are unacceptable. (Cointelegraph)