The BIS general manager believes that it is time to update and modernise the existing legal framework to ensure legitimacy, privacy, integrity and choice in CBDCs
On September 23, at the BIS Innovation Hub-Financial Stability Institute conference in Basel, Switzerland, Agustín Carstens, general manager of the Bank for International Settlements (BIS), underscored the importance of legal frameworks in the advancement and evolution of Central Bank Digital Currencies (CBDCs) around the world.
A legal framework is fundamental in establishing legitimacy and fostering trust in money. The same applies to CBDCs or any other currency. According to an IMF paper published in 2021, nearly 80 percent of central banks are either not allowed to issue a digital currency under their existing laws, or the legal framework is unclear. This needs to be rectified, the BIS General Manager opines.