After the official announcement of Libra, Agustín Carstens, the general manager of the Bank for International Settlements (BIS), revealed that central banks may adopt digital currencies sooner than we expect. The fear is that big tech groups such as Facebook could establish a dominant position in global finance and pose a potential threat to competition, financial stability, and social welfare. This according to an annual report from the BIS, June 30th, 2019.
Apparently, the financial status quo seems to be still in the bargaining phase, the third in the five stages of grief; to be more precise, it seems as though central banks are considering the developlment of their own digital currencies in order keep up with “rapid economic and technological changes.”
The news comes directly from Agustín Carstens, the general manager BIS, who explains how they are supporting the efforts of the national central banks in the development of central bank digital currencies (CBDCs).
One of the banks at the top of the list is the Riksbank, the central bank of Sweden, one of the world’s most cashless societies in the world where also beggars and buskers accept payments via their PoS terminals.
The event that sparked the attention of the BIS was the launch of Libra the cryptocurrency of the giant Facebook. In a report, the central bank explains how currencies created by tech multinationals could rapidly establish a dominant position in global finance and pose a potential threat to competition, stability, and social welfare.
The Global Economic Picture
In its annual report,