The Bank for International Settlements (BIS) management supports central banks' plans to create national digital currencies (CBDCs).
Back in June, this financial institution published a report stating that the appearance of the token would accelerate the modernization of the entire payment infrastructure of the state. BIS also believes that only central banks should be issuers of digital currencies.
Benoit Kere, who is the head of BIS's innovation division, told the Financial Times this week that central banks need to accelerate the development and implementation of CBDCs. If regulators hesitate on this issue, the expanding ecosystem of decentralized financing DeFi will dominate the market.
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It is worth recalling that central banks are not able to control the situation in this sector, the top manager emphasized. DeFi is challenging banks, and the latter must accept and respond with countermeasures.
If they choose to delay the launch of a token backed by fiat money, then the traditional financial sector is in danger of collapse, the BIS representative summed up.