I’m afraid the BIS was not very receptive at the time: it saw any expansion as a slippery slope.
Central Banks Can Design Their Own ‘Cryptos’
Carstens then took the audience on a thought experiment, to see what a world with central bank digital currencies (CBDCs) might look like (though fiat currencies today are already overwhelmingly digital). The focus was on central bank digital currencies as a cash substitute. He suggests that there is no urgent need for this as “for most countries, cash is still in high demand,” but banks want to be prepared.
Superficially, for the consumer, there would not seem to be much change, other than all payments being electronically. However, a CBDC would not necessarily be anonymous, and unlike cash, it could pay or charge interest.
Of course, if a central bank is designing it then it could be anonymous, and it wouldn’t have to pay or charge interest. In fact, if a central entity issues their own cryptocurrency, they can pretty much design it in any way they want. And wasn’t…