Agustin Carstens, general manager of the Bank for International Settlements, a global bank, stated on Wednesday that nations should establish legal frameworks that allow the use of central bank digital currencies (CBDC).
According to a 2020 study by the International Monetary Fund, almost 80% of central banks are either not permitted to issue a CBDC under current regulations or they have legislative frameworks that are unclear on this subject.
The situation must be fixed. At a seminar in Switzerland, Carstens said, “The public rightfully seeks forms of money that match its needs and expectations.
The technical and operational requirements of a CBDC have been investigated and addressed by central banks all over the world, he continued. According to a BIS poll, 93% of central banks were working on CBDC projects in 2022. The BIS has carried out several CBDC tests on its own and has urged nations to cooperate in developing their CBDC plans.
“It is just not acceptable if ambiguous or out-of-date legal frameworks can prevent their use. There needs to be a serious start to the work to address these problems. And it must go quickly, according to Carstens.