The Bank of International Settlements (BIS) has illustrated its narrative on CBDCs and says in its latest report that the COVID-19 pandemic has highlighted the severe need for the creation and development of Central Bank Digital Currency. The bank stated that central banks need to accelerate CBDCs’ development now.
In the current ongoing Coronavirus pandemic situation, there is the severe need of a CBDC and according to the BIS report, whoever manages to release such kind of currency first will prevail over others.
CBDC could offer a safe digital means of payment
Currently, various central banks and companies are working on developing new payment options for the facilitation of users and most of them are working on introducing Central Bank Digital Currency. CBDCs can offer a new and safe digital means of payment according to the report of the Bank of International Settlements.
The BIS report reads:
“One option at the frontier of policy opportunities is the issuance of CBDCs, which could amount to a sea change. CBDCs could offer a new, safe, trusted, and widely accessible digital means of payment. But the impact could go much further, as they could foster competition among private sector intermediaries, set high standards for safety, and act as a catalyst for continued innovation in payments, finance, and commerce at large.”
Outlining the current phase of payment digitization, the BIS report says that payment digitalization is coming fast amid the COVID-19 situation. Users need to make contactless digital payments as they ensure the less spread of the virus.
Highlighting the importance of CBDCs, BIS said that they might be the best solution for digital payments as they are fast and lower in cost. Most importantly, they are backed by central banks.
China to release Digital Yuan very soon
The reports are circulating that the central bank of China is far ahead from others in the development of its Central Bank Digital Currency and is currently in its testing phase.
As reported by Tokenhell earlier, China has successfully completed the background architecture development of its digital Yuan and it is expected to release its digital currency very soon.