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The Bank for International Settlements (BIS) has long been hostile to Bitcoin and cryptocurrencies. But it has since softened its speech well, and its latest report is even a plebiscite in favor of the digital currencies of central banks (MNBC).
Cryptos yes, but from central banks
The Bank for International Settlements is an institution based in Basel, Switzerland. It is the grouping of 60 central banks spread around the world.
This real “bank of central banks” has just released a report on June 24, about digital payments. The main observation that emerges is the need to quickly modernize the currency, to adapt it to the digital age. And central bank digital currencies have a big role to play in this modernization.
“MNBCs are an excellent example of how central banks can keep themselves at the forefront of innovation (…) It is up to central banks to choose to harness this force for the common good. "
And the BIS does not stop there in praise, the MNBC are squarely presented as "the next step" in the evolution of the currency.
Indeed, the digital currencies issued by the central banks would answer several problems according to the BIS:
- increase financial inclusion;
- provide a guarantee of security and integrity of digital payments;
- allow quick and inexpensive payments;
- encourage continuous innovation in payment systems.
MNBC increasingly perceived positively
The BIS report also presents a very interesting graph (below left). It highlights a very recent tidal wave of positive views on MNBCs from central banks around the world.
Source: BIS report
Since the beginning of 2020, the positive speeches of central banks on MNBCs have even generally become dominant compared to negative speeches. It must be said that the health and economic crises caused by the coronavirus have passed through in the meantime.
“The COVID-19 crisis, and the resulting increase in electronic payments, are likely to spur the development of MNBCs worldwide. "
It should also be noted (graph on the right above) that all central banks - in advanced and emerging economic zones - consider security and reliability as one of the main reasons for adopting a digital currency. However, for banks in emerging economies, the efficiency of domestic payments and the financial inclusion promised by MNBCs are also crucial assets.
The digital currencies of central banks are likely to constitute the state currencies of tomorrow. The question that arises is: what will be the place of decentralized cryptocurrencies in this future digital economy?
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