Today the Bank for International Settlements (BIS) the central banker’s bank, published a report about
Central Bank Digital Currency (CBDC). The conclusion is to proceed with caution and shows that while the majority are researching CBDCs, only a small number plan to issue one in the short to medium term.
The BIS defines a CBDC based on four characteristics. A central bank issues it, and it’s digital, not physical. But it’s also conceivable to have general purpose central bank accounts which aren’t tokenized (account-based). If the digital money is tokenized, then there are two potential types: “wholesale” for financial institutions only, and “general purpose” CDBCs which the BIS refers to as “digital cash”.
Sixty-three banks responded to a BIS survey covering 80% of the world’s population and 90% of economic output.
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