It is necessary to protect privacy and monetary freedom when developing CBDC

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During a conference in Switzerland on September 27, General Director of the Bank for International Settlements (BIS), Mr. Agustín Carstens emphasized the importance of regulations on protecting the privacy of CBDC users and maintaining privacy. maintain monetary freedom. According to him, that will be the key to driving adoption.

He said that different countries' laws have different rules about the type of currency their central banks can issue, which typically includes cash as well as credit balances on current or reserve accounts. reserve.

According to a BIS study, 93% of the world's central banks are participating in CBDC development at various stages. XEM that most of these organizations are actively looking to meet public demand for digital forms of currency. BIS leaders believe that outdated or unclear legal frameworks are hindering implementation and this is unacceptable.

Criticisms aimed at the potential abuse of CBDCs to enforce social credit scores have also been addressed. According to Mr. Carstens, CBDCs need to operate with a defined framework of rights and obligations.

He said three core elements are required, including protecting the privacy of CBDC users and data; the integrity of the financial system and the right of people to choose between CBDC and other forms of currency.

Carstens notes that countries have different trends regarding the use of cash, digital payments adoption as well as retail CBDCs, so new forms will likely coexist alongside money. commercial bank cash and cash.

As previously reported , China continues to be a leader in CBDC program development. The latest update to the pilot e-CNY app now allows travelers to China to pre-load funds into their e-CNY wallets using Visa and Mastercard debit cards.

Meanwhile in the US, a bill on CBDC supervision to prevent the Federal Reserve from issuing CBDC was passed in the House of Representatives on September 21. The bill will be presented to the National Assembly next to combat “state control of currency.”

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