In its paper, the Bank for International Settlements said a financial system running on a unified ledger could help foster greater participation, more personalized services, and improved speed and reliability for end users.
In a new report, the BIS surveyed 11 jurisdictions and their stablecoin approaches, concluding that the lack of harmony presented the biggest challenge.
While some experts believe tokenization has an array of positive global impacts, others cautioned of its potential to throw efforts to achieve financial inclusion into disarray.
The Bank for International Settlements’ Project Agorá is a collaborative effort by seven central banks to create a platform for cross-border CBDC payments and tokenized money transfers.
Even before artificial intelligence gained mainstream popularity, central banks have been utilizing the technology, according to a study by the BIS, which suggested the upskilling of workers on AI amid stiff labor market competition.
The Promissa project, made in collaboration between Bank for International Settlements, the Swiss National Bank, and the World Bank, will develop a proof-of-concept platform to facilitate digital tokenized promissory notes.
BIS's Project Tourbillon explores privacy-focused CBDCs, delving into eCash designs, security, scalability, and quantum-safe cryptography, addressing global central bank digital currency concerns.
BIS will tokenize promissory notes which still rely on stacks of papers, and while this “isn’t going to revolutionize the world,” it’s a critical first step.
The Bank for International Settlements general manager and the governor of South Korea’s central bank talked about the need for CBDCs, with both voicing concerns about Visa and Mastercard stablecoin.
The Bank for International Settlements has compared stablecoins to Eurodollars, saying they lack a central authority to maintain par when they reach the limit of elasticity.
Wholesale CBDCs don’t have the many complexities, risks, and complications of retail CBDCs and should launch in a few years, according to Bank for International Settlements General Manager Agustin Carstens.
The November 8 BIS report detailed that from January 2019 to September 2023, fiat-backed stablecoins only maintained their peg 94% of the time.
