The Bank for International Settlements (BIS) mentioned on the 27th (local time) that each country needs a legal framework regarding central bank digital currency (CBDC).
BIS Secretary-General Agustín Carstens urged a quick resolution, saying, “Regulations that do not keep up with timeliness should not hinder the issuance of CBDC.”
According to a report previously released by the International Monetary Fund in 2020, 80% of central banks are unable to issue CBDC due to the lack of relevant legal systems and lack of clarity.
Since then, over the past three years, several countries, led by China, have taken the lead in issuing CBDC and are trying to dominate the market, but international standard regulations are still lacking. The use cases of CBDC are also expanding to middle-income countries with abundant resources, referred to as 'BRICS', and developed countries such as Europe and the United States have not yet developed relevant regulations quickly, so the speed of issuance and development of CBDC is not fast.
Fortunately, Japan and Hong Kong are in the development stage, expressing their strong intention to develop CBDC and use it for international payments between companies, but even this is in the pilot stage.
In particular, in the United States, there is a debate regarding regulation, with U.S. Representative Ronnie Jackson criticizing CBDC as a "Trojan horse for the global elites." There is also criticism that the passage of CBDC-related legislation is being delayed due to the war of nerves between the Democratic Party and the Republican Party.
Vitalik Buterin, founder of Ethereum, said of CBDC on the 24th, "It is moving in the wrong direction," and added, "Rather than contributing to the blockchain-friendly environment or transparency that was originally intended, it is trying to expand the surveillance authority of governments and companies. “I do,” he criticized. He criticized, “CBDC will become a digital asset whose original purpose is weaker than expected.”
An industry official said, "It is true that central banks in each country are highly evaluating the potential of CBDC, but the concerns about 'how it will be designed' and 'who will use it and how much' are not over, so regulations cannot be prepared hastily," and said that clear regulations will remain in the future. I thought it would take some more time to prepare.
Meanwhile, in the United States, the CBDC issuance restriction law passed the House of Representatives Financial Services Committee on the 21st.
