Central bank digital currencies will 'complement' cash: BIS study

In its recent report, the Bank for International Settlements (BIS) examined the rise of central bank digital currencies (CBDCs) across different economies, and said that its role would be “intended as a complement to, not a replacement for cash.”

Additionally, the ultimate goal of the report is to share material on the topic for central banks to learn from one another and eventually add to the international policy dialogue in this space. 

“We believe that there can be great value in central banks learning from one another’s approaches – an activity that is promoted by international policy discussions (BIS (2020)) and the publications of central banks,” it said.

The report also pointed out that nations that are far along in the digital technology and innovation domain are more likely to succeed in streamlining the process of digital currency payments systems in order to adapt that model effectively.

In particular, the report takes a deeper look at three economies -- China, Sweden, and Canada -- to discuss the approach and design choices of retail CBDC projects. 

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