BIS and seven central banks publish common principles for retail CBDCs
The BIS publishes report on Central Bank Digital Currencies co-authored by seven major central banks including the Federal Reserve.
On October 9, 2020, BIS and seven central banks publish common principles for retail CBDCs. The BIS publishes report on Central Bank Digital Currencies co-authored by seven major central banks including the Federal Reserve.
The report examined foundational principles for CBDC s, explored technical design choices, analyzed potential impacts on monetary policy and financial stability, and outlined core features that central banks should consider when developing digital currencies. The coordinated effort among major central banks signaled that CBDCs were moving from theoretical research to serious development consideration and that digital money would likely become an important part of future monetary systems.
For Bitcoin's ecosystem, CBDC s represented both validation and competition. On the validation side, central banks' serious consideration of digital currencies vindicated cryptocurrency advocates' arguments that money would inevitably become more digital and that blockchain technology offered meaningful improvements over legacy payment systems.