The Bank for International Settlements (BIS) has published two papers on the legal and design considerations of central bank digital currencies (CBDCs). Jointly published with seven other central banks, the papers delve into privacy, interoperability, financial crime checks, cybersecurity, and more.
For years, the BIS has been exploring CBDCs with seven other central banks: the European Central Bank (ECB), the Bank of England (BoE), the Board of Governors of the Federal Reserve System, the Bank of Japan (BOJ), Sveriges Riksbank, the Bank of Canada and the Swiss National Bank (SNB).
This partnership has helped the eight entities gain a better understanding of the policy and system design aspects of a retail CBDC, resulting in the two papers, BIS said.
In their first paperon the legal aspects, the banks outlined four areas they believe central banks should focus on. The first is the legal classification of a retail CBDC; most legal frameworks are not designed with a digital …