Retail CBDC Would Require A Major Revolution
9 Dec 2020 — According to Agustin Carstens, GM of the Bank for International Settlements – BIS at the Singapore FinTech Festival fireside chat with Dr Taimur Baig, of DBS Bank, the challenge of wholesale CBDC now is how to perfect its usage (especially on cross border transactions), integrating with DLT to increase efficiencies for all types of activities that are represented by tokens.
Retail CBDC, completely a new policy will pose a bigger challenge where central banks have to move from a wholesale system, to providing retail services. This will require a major revolution in any society, albeit he singled out China’s case as exception.
1. All central banks want to be prepared and are working on it.
2. There is no one size fits all but it will be a sovereign decision.
3. It must first make sense to the country and It facilitates local needs
4. Financial inclusion with societal benefits are crucial.
“There is space for everybody, but there are some aspects that some parties do much better than others. And that’s the case of a central bank, and the Fiat currency.” he added. However, he stressed that there’s a huge amount of space for non-central bank actors too in the world of payment and private #digitalcurrencies.