Study: Central Bank Digital Currencies Are Not for Cross-Border Payments

A study by the Bank for International Settlements (BIS) says that digital currencies (CBDC), which central banks are working on, do not focus on cross-border payments.

Study: Central Bank Digital Currencies Are Not for Cross-Border Payments

Many regulators are competing with each other, which of them will issue their own digital currency faster. However, so far none of the competing regulators has achieved any significant success in this direction, the authors of the report emphasized.

In January, BIS published another study that noted that most central banks are only exploring options for launching their CBDC. No practical steps have yet been taken in this direction.

According to BIS, so far only 17 governments are ready to issue a CBDC. However, not one of the cryptocurrency projects of the central banks is launched to facilitate international payments. Although it is possible that in the near future, regulators will begin to consider the possibility of equipping CBDC with a support function for cross-border settlements.

Note that the Central Bank of Sweden recently confirmed reports of the start of testing the digital version of the crown. Participants in the test will be able to become ordinary citizens of the kingdom and evaluate the benefits of using the CBDC as a payment instrument.