BIS Chief Calls on Countries to Set Up CBDC Legislation

Countries should set up legislation that supports the deployment of central bank digital currencies (CBDC) Agustin Carstens general manager of the Bank for International Settlements, an international bank said on Wednesday.

Close to 80% of central banks are either not allowed to issue a CBDC under existing legislation or they have a legal framework which lacks clarity on this matter, a 2020 paper by the International Monetary Fund said. “This needs to be rectified. The public rightly demands forms of money that meet their needs and expectations,” he said at a conference in Switzerland.

Central banks around the world have been investing in exploring and addressing both the technical and operational requirements of a CBDC he added. In 2022 93% of central banks were engaged in some form of CBDC work, a BIS survey showed. The BIS itself has conducted multiple CBDC experiments and has called for countries to collaborate on their CBDC designs.

“It is simply unacceptable that unclear or outdated legal frameworks could hinder their deployment. The work to address these issues needs to begin in earnest. And it needs to proceed at pace,” Carstens said.