An executive at the Bank for International Settlements (BIS) says central banks must act with a sense of urgency as crypto assets are poised to challenge traditional banking models.
Benoît Cœuré, the head of the innovation hub at the BIS, says the pandemic has expedited the move to digital currencies and that central banks must keep in step with the evolution of the payments landscape.
Cœuré spotlights the entry of crypto assets in the global payments ecosystem, which he says have the potential to disrupt current banking systems.
“Stablecoins are knocking on the door, seeking regulatory approval. Decentralized finance (DeFi) platforms are challenging traditional financial intermediation. They all come with different regulatory questions, which need fast and consistent answers… But make no mistake: global stablecoins, DeFi platforms and big tech firms will challenge banks’ models regardless.”
In order to stay relevant in a world that’s rapidly going digital, Cœuré says that it is urgent for central banks to