The Bank for international settlements (BIS) believes that crypto-currencies issued by Central banks can threaten the stability of the global financial system.
This is stated in the report published by the group of analysts, headed by senior adviser at the European Central Bank’s (ECB) Klaus Leber (Klaus Löber) and a representative of the Central Bank of the Netherlands Ardt Huben (Aerdt Houben).
The paper argues that the digital currency issued by Central banks, can become competitors to traditional Vietnam the money, which could lead to higher interest rates. As noted in the report, “implementation of digital currency Central Bank (CBDC) will cause fundamental problems that go far beyond payment systems”.
“CBDC General purpose can lead to higher instability of funding deposits in commercial banks. Even if they are intended primarily for purposes of payment during periods of stress outflows the Central Bank can occur quickly and on a large scale, by challenging commercial banks and the Central Bank management of such situations,” said the report’s authors.
Implementation of the CBDC may lead to an increase in the presence of the Central Bank in financial schemes and strengthening its role in the allocation of resources, the analyst added. This, in turn, may entail total loss of the economy due to lost productivity.
“This can lead Central banks into uncharted territory, as well as increased political interference,” concluded the report’s authors.
Earlier, the UK’s Central Bank (Bank of England) announced a possible release of the digital currency in 2018. But the first in the world to produce tokens through the ICO was going to Estonia, but against the idea in favor of the ECB — the country, unlike the UK, the Euro zone.
At the end of February, the national cryptocurrency El Petro released Venezuela, where at that time the inflation rate for the previous 12 months amounted to 6147%.