Posted 10 months ago | by Catoshi Nakamoto

The old guard of the ancient dying financial system which includes the Bank of International Settlements (BIS), World Bank, and the International Monetary Fund (IMF), have all advocated the benefits for developing Central Bank Digital Currencies (CBDCs.)

AdobeStock 253884052 BIS, IMF, World Bank Advocate For Connecting The World Through Central Bank Digital Currencies mCBDC

The three global bodies released the report during the G20 meeting over the weekend. The financial bodies all asserted that global coordination on central bank digital currencies (CBDCs) by all financial entities would disrupt the current financial system eliminating the need to rely on expensive, outdated, and slow transfer services used to send money around the world like SWIFT.

“Faster, cheaper, more transparent and more inclusive cross-border payment services would deliver benefits for citizens, businesses, and economies worldwide,” said Indermit Gill, World Bank Group vice president of finance.

Sir Jon Cunliffe, deputy governor for the financial stability of the Bank of England, stated that the technology behind CBDCs offers “the opportunity to start with a ‘clean slate'” on improving the current ancient payments system.

The IMF, World Bank, and BIS furnished the report for the recent G20 meeting in Italy which hosted finance ministers and central bankers from all over the world’s largest economies to meet for a few days of discussions on various topics. Bitboy Crypto previously reported the meeting would be happening to viewers of the Youtube channel, and readers of this news blog.

The report imagines a central bank digital currency ecosystem known as mCBDC or multiple CBDC bridge, where digital currencies would be able to be exchanged with one another instantly. This already exists today with a service offered by Central Banks to each other called “liquidity swaps.” 

The only difference would be the Central Banks would be offering this service to the public as opposed to each other and private interests.

The BIS has been very adamant on pushing for the mCBDC bridge since they released a report in April discussing it.

“The project, first initiated bilaterally by the Hong Kong Monetary Authority and the Bank of Thailand under the name Inthanon-LionRock, was renamed mCBDC Bridge when the Innovation Hub, the Digital Currency Institute of the People’s Bank of China and the Central Bank of the United Arab Emirates joined,” BIS’ website reads.

It’s worth noting that the mCBDC bridge was first announced as a joint project between four central banks — China, United Arab Emirates, Hong Kong, and Thailand.

“Multiple Central Bank Digital Currency (m-CBDC) Bridge” project — a collaboration between the Digital Currency Institute of the People’s Bank of China, the Central Bank of the United Arab Emirates, the Hong Kong Monetary Authority and the Bank of Thailand — is also “strongly supported” by the Bank for International Settlements Innovation Hub Centre in Hong Kong, according to a joint statement.

The document also indicated that there are risks of issuing a digital currency, specifically expressing that in some countries exchange rate controls and monetary policy sovereignty could be impaired by reduced barriers to currency replacement. The report further suggested that by providing retailers easier access to cross-border transactions “all else equal, might increase risks for runs on both domestic banking sectors and currencies.”

Gill stated the risks are especially enunciated for emerging markets and developing economies, expressing that regulatory and policy concerns in individual countries would “require a lot of work.”

The report leaves it up to each country to decide its own pros and cons for issuing a CBDC.

“CBDCs have the potential to enhance the efficiency of cross-border payments, as long as their design follows the ‘Hippocratic Oath for CBDC design’ and its premise to ‘do no harm,’” the report stated.

Bitboy Crypto previously reported on BIS’s interest in CBDCs, and how the bank of central banks has given its blessing to 56 of 60 of the countries it represents to develop digital fiat currencies.

More recently last year, eight central banks prepared a report on CBDCs including — Canada, the U.K., Japan, Sweden,  Switzerland, the U.S. Federal Reserve, the European Central Bank, and lastly the Bank for International Settlements (BIS).

The joint report stated “foundational principles and core features” for central bank digital currencies (CBDCs) and how they should be designed. These three principles are as follows.  First, a CBDC should work adjacent with cash and other current payment types “in a flexible and innovative payment system.” Second, a CBDC  should support “wider policy objectives” and “do no harm” to monetary and financial stability. Third, a CBDC should “promote” innovation and performance.

You can learn more about mCBDC bridge in the video below directly from BIS.

Bitcoin is currently trading at [FIAT: $33,524.03] DOWN -1;2% in the last 24 hours according to Coingecko at the time of this report.

About Catoshi Nakamoto

c6ea0c3794492f30883e516d39b2597a?s=90&d=blank&r=g BIS, IMF, World Bank Advocate For Connecting The World Through Central Bank Digital Currencies mCBDCActivist/Journalist, former writer - We Are Change, The Mind Unleashed, Coinivore, others. Currently writing for - Activist Post and Bitboy Crypto. Not Right or Left Apolitical. I Care About Truths (CATS.) Cryptocurrency enthusiast, I mined and lost 100+ BTC in 2010-2011. I work with - Bitboy, SoMee, CEEK, Presearch, and W3BT aka FMW Media Group. Friend of mostly everyone who isn't a dick. Just A Cool Cat.