A well-known critic of bitcoin and cryptocurrency General Manager, Bank for international settlements (BIS) has spoken out against the issue of digital currencies Central Bank (CBDC). At a performance in Dublin , Agustin Carstens (Agustin Carstens) highlighted a number of risks associated with the release of CBDC, according to Bloomberg.
Karstens gave the example of the emergence of financial panic, when the release CBDC will cause a transfer of funds from commercial banks at accounts in CB that destabilizie system.
Another disadvantage of the use of CBDC, the head of the BIS considers potential changes to interest rates affect the demand for money. According to Carstens, this can lead to an increase in the balance of the Central Bank, which will require increasing assets, which in turn may affect the liquidity of the financial market.
“Central banks have huge operational implications of implementing monetary policy and implications for the stability of the financial system. Central banks do not slow down innovation just for the sake of them. But they also don’t have to speed up, ignoring all road conditions, “ said Karstens, in his speech at the Central Bank of Ireland.
Recall that according to the survey conducted by the BIS, the possibility of issuing CBDC considering 70% of Central banks. Thus, for example, in Japan, South Korea and Switzerland, regulators have considered this step inefficient and risky, Israel and India decided to postpone. Earlier, the Deputy Governor of the Central Bank of Italy Fabio Panetta (Panetta Fabio) said that Central banks are not ready to release CBDC.
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