BIS: Countries Must Create a Legal Framework for CBDCs

The Bank for International Settlements has just called on all governments to develop a regulatory framework for the implementation of central bank digital cryptocurrencies.

Agustin Carstens, president of the Bank for International Settlements (BIS), has just called on all governments to develop a regulatory framework for the implementation of central bank digital cryptocurrencies (CBDCs).

According to him, outdated legal frameworks in several jurisdictions could hinder the development of the technology. Carstens has added:

“The work to address these issues needs to begin in earnest. And it needs to proceed at pace.”

He has said central banks are now actively exploring CBDCs to stimulate innovation, but they cannot achieve the desired transformation on their own.

The BIS head has referred to an IMF paper from 2021, according to which almost 80% of all central banks are either unable to issue a CBDC under existing laws or have vague legal restrictions.

According to a BIS study, 93% of central banks are in various stages of CBDC development. This data suggests the legal system is lagging behind new technologies, Carstens has explained.