BIS releases report on central bank digital currencies

The Bank of International Settlements has said that general purpose central bank digital currencies (CBDCs) could "revolutionise" the way money is provided and the role of central banks in the financial system, while cautioning that "these are unchartered waters with potential risks".

A joint report by the Committee on Payments and Market Infrastructure and the Markets Committee of the Basel-based organisation stated that CBDCs - commonly referred to as cryptocurrencies - are worth considering as the underlying technology might hold promise for wholesale payments, clearing and settlements.

In an accompanying op-ed published in the Financial Times, Benoît Cœuré and Jacqueline Loh, Chairs of the two committees behind the report, also said that "a consumer-oriented CBDC could have far-reaching ramifications for the role of money, the financial system and the economy".

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