BIS Chief Advocates for Clear CBDC Legal Frameworks

BIS Chief Advocates for Clear CBDC Legal Frameworks

#1 Crypto Trading Robot

Key Insights:

  • Agustin Carstens urges nations to establish clear CBDC legal guidelines at the BISIH-FSI conference.
  • A staggering 80% of central banks grapple with CBDC implementation due to legal constraints.
  • BIS introduces the Polaris framework, aiming to bolster digital currency security amidst global shifts.

Agustin Carstens, the esteemed General Manager of the Bank for International Settlements (BIS), emphasized the pressing need for nations to carve out lucid legal frameworks tailored for Central Bank Digital Currencies (CBDCs). This significant call to action was made during the BISIH-FSI conference held in Switzerland. Additionally, the bank made Carstens’ insights from September 27 available to the public, highlighting a significant barrier to the global adoption of CBDCs.

Legal Hurdles Stymie 80% of Central Banks

A recent report paints a concerning picture. It reveals that 80% of central banks need help rolling CBDCs. The root of these challenges lies in existing legal constraints or a glaring absence of explicit guidelines. Significantly, this data aligns with findings from a 2020 International Monetary Fund (IMF) paper.

With his astute understanding of the financial landscape, Carstens underscored the urgency of addressing this issue. He stated, “The public rightly demands forms of money that meet their needs and expectations.” His words resonate with the sentiment that modern financial systems should evolve to cater to contemporary demands.

The BIS’s Proactive Role in CBDC Development

Furthermore, a 2022 BIS survey unveiled that 93% of central banks were actively engaged in CBDC-related projects. The BIS itself has been at the forefront, spearheading several CBDC experiments. Moreover, it has consistently advocated for greater global cooperation in crafting CBDC strategies.

The report also sheds light on the direction some central banks are taking. While some focus on wholesale CBDCs, designed to streamline interbank transfers and other large-scale transactions, others are exploring the realm of retail CBDCs. Carstens opined that these retail CBDCs have the potential to coexist with traditional fiat currencies. Hence, they could offer a digital alternative to standard banknotes and coins.


Carstens further highlighted the central banks’ role as the guardians of money’s value. As such, they are responsible for ensuring that money remains accessible in formats that align with societal needs and expectations. He remarked on the current situation, saying, “It is simply unacceptable that unclear or outdated legal frameworks could hinder their deployment.” He urged for swift and decisive action in this pivotal domain.

Meanwhile, the BIS has been more than just an observer. It has taken proactive steps to facilitate the smooth integration of CBDCs. On July 7, they introduced the Polaris framework. This comprehensive security framework encompasses seven stages, from preparation to adaptation. Its primary objective is to aid central banks in fortifying the security of digital currencies. The bank also underscored the importance of safeguarding CBDCs, given their status as crucial national infrastructure. Cyberattacks targeting them are seen as a significant risk, primarily due to potential fallout in trust and the ensuing operational, legal, and reputational ramifications.

The bank disclosed that by 2030, 24 central banks plan to introduce their CBDCs. This move signifies a monumental shift in the global financial landscape, underscoring the importance of robust legal frameworks and security measures.

#1 Crypto Trading Robot

DISCLAIMER: It's essential to understand that the content on this page is not meant to serve as, nor should it be construed as, advice in legal, tax, investment, financial, or any other professional context. You should only invest an amount that you are prepared to lose, and it's advisable to consult with an independent financial expert if you're uncertain. For additional details, please review the terms of service, as well as the help and support sections offered by the provider or promoter. While our website strives for precise and impartial journalism, please be aware that market conditions can shift unexpectedly and some (not all) of the posts on this website are paid or sponsored posts.

Christopher Craig
About Author

Christopher Craig

Christopher Craig, a crypto literary savant, masterfully deciphers the intricate world of blockchain. Blending astute analysis with a clear narrative, Christopher's articles offer readers a lucid understanding of digital currencies. As the crypto sector expands, his erudite insights continue to guide both novices and seasoned enthusiasts

Leave a Reply

Your email address will not be published. Required fields are marked *

Skip to content