In 2022, the Innovation Center of the Bank for International Settlements (BIS) is going to develop new products based on state digital currencies and study the risks of decentralized financial systems.
The center plans to launch new projects in the field of CBDC and next generation payment systems during the year. The specialists of the division explain the need to study DeFi by concern for the security of the international financial system.
BIS CEO Agustín Carstens noted that the Innovation Center has built the right development strategy:
“With an expanded network of hubs and exciting new projects, the center is better positioned to drive robust and sustainable innovation, take advantage of digital technologies, serve the public interest, and work collaboratively with central banks, the academic community and the private sector.”
Central banks cooperating with the innovation center intend to launch 13 projects in the field of improving payment systems and CBDC in 2022, BIS says. The division intends to expand its portfolio of research aimed at developing new technology products for central banks around the world. Including in the field of “green finance”, technologies of regulation and supervision, as well as cybersecurity.
Several projects are developing the G20 initiative to expand the systems of global international payments, in terms of implementing mechanisms for interaction with the CBDC.
Last week, Agustin Carstens said that central banks are the only guarantor of the soundness of the monetary system. At the beginning of the month, BIS appointed central bank digital currency specialist Raphael Auer to lead the Eurosystem Innovation Center. Last year, BIS called DeFi a potential threat to the financial system and urged governments to develop legislation to regulate this sector of the economy as soon as possible.
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