The Advisory Group on Risk Management set up by the Bank for International Settlements (BIS) said in a report on Monday that central banks lack the expertise and skills needed to mitigate the risks of central bank digital currencies (CBDCs). He pointed out that there is a need to prepare to introduce stronger measures.
Countries around the world have been considering issuing CBDCs to improve payment efficiency and financial inclusion. However, the introduction of CBDC could have a “significant impact” on central banks’ business models and pose a range of risks, the report said.
“A key risk is the potential gap in central banks’ internal capabilities and skills,” the report said. The central banks of Brazil, Canada, Chile, Colombia, Mexico, Peru, and the United States are members of this group.
The report called on central banks to establish processes to identify, assess, monitor and report on CBDC risks. In addition, introducing cutting-edge technologies such as distributed ledger technology that supports crypto assets (virtual currencies) not only requires a high degree of expertise, but also requires a level of expertise that central banks may not currently be equipped to handle. He said they would face technical problems.
“For CBDCs to become trusted payment instruments, central banks must, among other things, address the risks of disruption and disruption and ensure integrity and confidentiality,” the report said.
BIS advisory group recommends that central banks carry out careful and realistic risk assessments. We proposed an integrated risk management framework that can be applied from the research and design stage to the operation of CBDC.
｜Translation and editing: Rinan Hayashi
｜Original text: Central Banks Aren’t Sufficiently Ready for CBDC Risks: BIS Report