BIS head describes ideal ‘unified ledger’ for central banks and other financial users

Bank for International Settlements General Manager Agustin Carstens spoke at the Singapore FinTech Festival on February 22 and outlined the digital financial infrastructure that he believes will best serve the needs of central banks. He called this infrastructure “the unified ledger”.

Carstens compared theoretical unified ledger with a smartphone, stating that they both work seamlessly with different components. However, unlike a smartphone, the unified ledger will have an open architecture and demonstrate programmability and composability, i.e. it will run and integrate smart contracts. Carstens noted that more than 2 million applications are available to smartphone users. He said:

“The unified ledger is a digital infrastructure capable of integrating the monetary system with other registers of real and financial claims.”

According to Carstens, the single ledger does not have to be decentralized or intractable, but can be tailored to various projects that “use money as a means of payment and settlement” where the central bank plays a large role in the management of the ledger and the consumer sector is privately owned. hands.

Central bank digital currency and tokenized deposits could exist on “separated” ledgers with smart contracts to facilitate their interoperability, Karstens said. The ledger can be used for everything from IoT micropayments to escrow in real estate transactions.

BIS to Launch Stablecoin Monitoring Project and Focus on CBDC Experiments

Carstens took the opportunity to express his current opinion on the stablecoin. He said about stablecoin supporters:

“But what this view forgets is that what sustains fiat money is not the application of new technologies, but all the institutional arrangements and social conventions behind it.”

He added that they also risk abandoning the peg. Stablecoins were developed because they could technically do things that other forms of money could not. Central banks should take over this role from them.

Carstens also raised the annoyance of the crypto community on February 22, slamming the success of the cryptocurrency.

Credit :

Back to top button

Adblock Detected

Please consider supporting us by disabling your ad blocker