Bank For International Settlements Distances Itself From Centralized Digital Currencies

A new joint European banking report has poured cold water on the effectiveness of so-called central bank digital currencies (CBDCs).

The report, submitted by two working groups under the auspices of the Bank for International Settlements (BIS) and European Central Bank (ECB), warns about the “adverse” effect of introducing a CBDC.

It also advocates that banks and other authorities “continue their broad monitoring” of digital currencies outside centralized control such as Bitcoin.

“Any steps towards the possible launch of a CBDC should be subject to careful and thorough consideration. Further research on the possible effects on interest rates, the structure of intermediation, financial stability and financial supervision is warranted,” its authors conclude.