The Bank for International Settlements (BIS) Approves The Issuance of E-money by Central Banks in Each Country

According to the Financial Times, it reported that unlike previous disapproval by the Bank for International Settlements (BIS), Agustn Carstens agreed to issuance of its own e-money while still showing concerns about the impact of Facebook's cryptocurrency Libra on international finance.

Facebook's cryptocurrency Libra appears raise concerns regarding building a model that is too similar to the central bank's digital currency.

Carstens said, "many central banks are now issuing or considering virtual currency, and we are supporting the move. There is also the possibility that the market will be formed more quickly than expected, and that the central bank will need to supply digital currencies (virtual currencies).

Currently, notes issued by the central bank generally have a channel for circulation through private financial institutions, and if the central bank has issued a digital currency (virtual currency), it is likely that currencies will be circulated directly in public rather than through such financial institutions.

If virtual currency is issued by the central bank and the currency is distributed and managed collectively, it is expected to lead to a reduction in the risk of money laundering or tax evasion. On the contrary, when transaction does not involve private banks as an intermediary, it also takes into account the concerns that the returns of financial institutions that operate the banking business will be significantly low.

Already, central bank checking is an area where digitization is underway in countries around the world, but the impact and the possibilities of replacing such a widespread banking sector is still in question. With platforms such as Facebook in charge of the currency's issuance and settlement system amid the progress of IT, regulators in each country are being questioned but people are not getting sufficient response.

Reporter Gina Lee (news@dailycoinews.com)의 기사 더 보기

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