Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Central Bankers Talk Down Concerns Over Digital Currency Risks

Cryptocurrency NewsJun 16, 2021 18:24
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Bloomberg. Benoit Coeure, executive board member of the European Central Bank (ECB), speaks during the central, eastern and south-eastern European economies (CESEE) conference at the European Central Bank (ECB) headquarters in Frankfurt, Germany, on Wednesday, June 12, 2019. International Monetary Fund leader Christine Lagarde called on governments to de-escalate current trade disputes and instead work to fix the global system. Photographer: Andreas Arnold/Bloomberg 2/2

(Bloomberg) -- Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast.

Central bankers sought to play down concerns that their efforts to develop digital currencies will take business away from the financial industry.

Benoit Coeure, the head of the Bank for International Settlement’s Innovation Hub, which was expanded to Stockholm on Wednesday, said commercial lenders should look at central bank digital money “as an opportunity that will enable them to offer new services to their customers, as part of a broader set of new technologies.”

Monetary authorities from Sweden to China are working on their own digital currencies as the dwindling use of notes and coins threatens to upend traditional payment methods. Meanwhile, the emergence of cryptocurrencies such as Bitcoin has added to pressure on central banks to ensure they have a viable alternative before unregulated payment forms take over.

But the prospect of a digital currency controlled by central banks has some corners of the commercial banking world worried, amid concerns they’ll lose control of customer flows. Fitch Ratings recently warned that the widespread adoption of CBDCs could disrupt financial systems if not properly managed. Risks include the sudden flow of funds into CBDC and out of bank deposits.

Coeure said the most likely setup will be a two-tier model, whereby digital currencies would be issued by central banks but distributed by commercial lenders.

Cecilia Skingsley, the first deputy governor of Sweden’s Riksbank, said central banks will play a “focused and narrow role” in providing the infrastructure on which the private sector can build, “and that’s where we are going to stay.”

Central bank digital currencies shouldn’t be about “changing the way the financial system works,” Coeure said.

Read More: Federal Reserve’s Digital Dollar Push Worries Wall Street

©2021 Bloomberg L.P.

Central Bankers Talk Down Concerns Over Digital Currency Risks
 

Related Articles

Ethereum Climbs 10.10% In Bullish Trade
Ethereum Climbs 10.10% In Bullish Trade By Investing.com - Sep 27, 2021

Investing.com - Ethereum was trading at $3,145.13 by 04:03 (03:03 GMT) on the Investing.com Index on Monday, up 10.10% on the day. It was the largest one-day percentage gain since...

Cardano Climbs 10.09% In Bullish Trade
Cardano Climbs 10.09% In Bullish Trade By Investing.com - Sep 25, 2021

Investing.com - Cardano was trading at $2.3572 by 11:08 (10:08 GMT) on the Investing.com Index on Saturday, up 10.09% on the day. It was the largest one-day percentage gain since...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Mohd Naushad
Mohd Naushad Jun 17, 2021 10:04
Saved. See Saved Items.
This comment has already been saved in your Saved Items
How to invest money
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email