Bank for International Settlements tests CBDC

The Bank for International Settlements (BIS) is testing a CBDC. This is intended for the processing of international transfers. Several central banks are participating in the pilot project.

Table of Contents

Bank for International Settlements will CBDC make a breakthrough?

Known as the central bank of central banks, the Bank for International Settlements brings together many of the best-known representatives. Members include the Swiss National Bank , the European Central Bank and the Fed .

Now even the Basel-based BIS wants to launch its own CBDC. A pilot project is to be launched in cooperation with several central banks. Participants include Israel’s, Norway’s and Sweden’s central banks, Reuters reports .

The international financial organization is thus following a trend that has already gained a foothold globally. China’s turning away from cryptocurrencies in favor of a CBDC is well known.

In many other countries around the world, a CBDC is either being researched, tested or has already been fully introduced. Only in June did a state declare a CBDC its official national currency for the first time .

Only a few countries have so far announced their rejection of a digital central bank currency. A BIS project could even play a crucial role in promoting a CBDC.

After all, as an intermediary, the BIS could solve the problem of interoperable CBDCs. States favor their own CBDC, as this can increase their power.

What is the problem with a digital central bank currency?

In the crypto scene, CBDCs are met with little support. They are considered a dystopian instrument of the surveillance state and thus the complete antagonist of a classic cryptocurrency such as Bitcoin .

FED President Neel Kashkari , who in August expressly warned of the dangers of a digital central bank currency and questioned its usefulness , proved that not every member of an authority supports this monitoring tool.

The same positions have long been heard from the crypto scene. Ethereum co-founder and Cardano founder Charles Hoskinson explained in the spring why CBDCs are a bad idea .

Yesterday Cryptoquorum.com reported on Australia ‘s CBDC, which is breaking new ground. In fact, the peculiar concept shows that they want to offer benefits to the users of the digital currency. One refrains from total surveillance.