Economies Need Central Bank Digital Currencies More Than Bitcoin
According to a global banking watchdog.
According to a global banking watchdog.
While investors in Bitcoin and other cryptocurrencies may disagree, when it comes to digital money, central banks have the right stuff.
That is according to the Bank for International Settlements (BIS), which has put its stamp of approval on central bank digital currencies (CBDCs) as it urges those institutions to pick up the pace.
Central banks are perfectly placed to offer “settlement finality, liquidity and integrity. They are an advanced representation of money for the digital economy,” which needs to be designed “with the public in mind,” the global banking regulatory body argued in a study released on Wednesday.
A form of digital money, CBDCs are denominated in the national unit of account, which is a direct liability of that central bank. According to PwC, more than 85% of central banks are currently investigating digital versions of their currencies, with China now in the lead.
The spotlight has increased on digital currencies this year, largely due to the popularity of Bitcoin, which the BIS again criticised, as it brandished cryptocurrencies as speculative assets used at times for financial crimes and ransomware. “Bitcoin in particular has few redeeming public interest attributes when also considering its wasteful energy footprint,” it said.
Cryptocurrency risks have been evident this year, as Bitcoin has taken investors on a wild ride, with prices down more than 50% from an all-time high of over US$64,000 reached in mid-April.
Neither are stable coins going to work as digital money, said the BIS, describing those as “ultimately only an appendage to the conventional monetary system and not a game changer.”
The BIS’ fresh urgency to get central banks moving comes amid its concerns that Big Tech could get there first as it muscles into financial services. And user data in existing technology businesses such as social media or e-commerce offer those companies a competitive edge. That can lead to a so-called “data-network-activities” loop that creates a vicious circle of “data silos, market power and anti-competitive practices,” it warned.
Left in the hands of central banks, though, CBDCs “could form the backbone of a highly efficient new digital payment system by enabling broad access and providing strong data governance and privacy standards based on digital ID,” it said.
Of course, international collaboration will be paramount, the BIS added. Federal Reserve Chair Jerome Powell in May promised his central bank would take the lead in “developing international standards for CBDCs.”
Following the devastation of recent flooding, experts are urging government intervention to drive the cessation of building in areas at risk.
When people talk about making a seachange, chances are this is the kind of property on the NSW South Coast that they have in mind.
Open for inspection for the first time this Saturday, 24 Point Street Bulli offers rare absolute beachfront, with never-to-be-built-out north facing views of the ocean. Located on the tip of Sandon Point, this two-storey property is a surfer’s dream with one of Australia’s most iconic surf breaks just beyond the back wall.
On the lower floor at street level, there are three bedrooms and two bathrooms, including a family bathroom and an ensuite in the master suite. A fourth bedroom is on the upper floor, along with the main living area, and is serviced by its own bathroom.
While this would make a spectacular holiday home, it is well equipped for day-to-day living, with a spacious gourmet kitchen and butler’s pantry set into the articulated open plan living area on the first floor. A separate media room to the street side of the property on this level provides additional living space.
Every aspect of this property has been considered to take in the light and views, with high ceilings internally and spacious, north facing decks on both levels to take in views of rolling waves. If the pull of the ocean is irresistible, it’s just a 100m walk to feel the sand between your toes.
The house is complemented by a Mediterranean, coastal-style garden, while the garage has room for a workshop and two car spaces.
An easy walk to Bulli village, the property is a 20 minute drive from the major hub of Wollongong and just over an hour to Sydney.
Open: Saturday August 6 2pm-3pm Auction: Saturday September 3 Price guide: N/A but expected to exceed $5.3m paid in March for 1 Alroy Street
Contact: McGrath Thirroul – Vanessa Denison-Pender, 0488 443 174