At the launch of the Bank for International Settlements (BIS)’s fourth innovation hub in London, Governor Andrew Bailey took a positive stance on the Bank of England’s current work on central bank digital currencies.
Bailey said: [CBDC] The fact that the front desk and we are working on this important innovation. If this happens, it will be one of the most fundamental innovations in central bank history and will lead us to a new era. “
Discussion in the morning Covering multiple payment-related topics, from payment standards such as cross-border payments, open banking, open finance, regtech, suptech, ISO 20022 to digital currencies, all with technology now available in the private sector It is tied to the basic desire to harness innovation. Strengthen public sector infrastructure.
“As a central bank, we are always aware of the importance of innovation to the global financial system and aim to support it in the safest way possible. Of course, the private sector is innovation and commerce. Innovation can be created. It is comparative advantage and expertise. However, the public sector enables and channels its development to provide efficient and secure financing to consumers and businesses across the country. It plays a very important role in doing so. “
Bailey continued that there are clear benefits from collaboration and collaboration in many areas, especially those covered by the BIS Technology Hub. Bailey will focus on the key themes raised in the Califa review earlier this year, with the innovation hub being based in London while actively leveraging the UK’s entire fintech sector and financial expertise. Was emphasized.
Bailey said significant developments are currently underway across global financial innovation and that there is “strong” international public sector cooperation on issues such as stable coin development. In addition to BoE’s own work on central bank digital currencies, it is also close during the work done by financial regulators to understand how these market trends affect financial stability. There is work.
“The innovation agenda presented by BIS is at the heart of this central global cooperation: future financial market infrastructure, central bank digital currencies, more generally digital currencies, reg tech, surveillance technology, cyber security. Focusing on open finance. This is sadly also the center of what we have to do. We also protect and do green finance. So, to put it all together, what is this? You can see if it’s an ambitious and important agenda. “
Benoit Cœuré Head of the BIS Innovation Hub has confirmed that digital payments and the CBDC are important parts of the BIS agenda. In fact, half of BIS’s current projects are CBDC-related, covering wholesale, retail, and multi-CBDC interoperability.
“Our portfolio is spread across centers in Hong Kong, Singapore and Switzerland, initially focused on wholesale CBDCs, but there are also some projects on retail CBDCs. Next-generation multilateral for wholesale CBDCs. Exploring the potential of cross-border payment platforms is also an important focus. “
More BoE tycoons added insights on this topic, and Deputy Governor John Kanriff explained that banks have been focusing on new types of digital money such as stablecoin and CBDC for some time.
“We released a discussion paper on Monday, which was a big week for the development of the FinTech space. For central banks, we explained many of the key issues that these new types of digital money could potentially raise. The central bank itself has been one of the greatest innovations and one of the greatest developments of the central bank since it began centuries ago. “
David Ramsden, deputy governor of the central bank, added: Some of the ones published earlier this week will focus on the areas of payments and CBDC, regtech, suptech, data and open finance as obvious priorities. “
Following the morning session, Bradley Rice, a financial regulatory partner at law firm Ashurst, said: It has a global impact on FinTech development.
“As the private capital markets change and innovate, and the stable private coins and cryptocurrencies continue to develop, it is imperative that the central bank innovate. The central bank’s digital currency is in the process of being launched or advanced. That’s why many are on this journey. It’s time for central banks, regulators and legislators to coordinate their response and industry participants to provide clarity to drive the Fourth Industrial Revolution. came.”
Governor Bailey was encouraged by the progress made on the CBDC’s “significant innovation.”
Source link Governor Bailey was encouraged by the progress made on the CBDC’s “significant innovation.”