Using CBDCs within a single system could address some of the problems associated with cross-border payments. This is stated in a BIS report (Bank for International Settlements).<\/p>\n
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Researchers say national digital currencies are particularly relevant for emerging markets. However, the expansion of the testing<\/a> of the asset in China and the launch of a CBDC<\/a> in the Bahamas signal a likely rise in such initiatives, the experts said.<\/p>\n In BIS, they noted that a single system using several digital currencies would solve a number of problems, including slow payment processing.<\/p>\n \u201cThese advantages will be hard to achieve if central banks from the outset do not take cross-border aspects into account in designing CBDC and do not coordinate their activities internationally to avoid the mistakes of the past,\u201d the document says.<\/p>\n<\/blockquote>\n Experts noted that such cooperation would give central banks a competitive edge over stablecoins. In their view, the diversity of national digital currencies and \u201cstrengthening monetary sovereignty\u201d would help prevent the widespread adoption of the latter.<\/p>\n \u201cCBDC, interoperable with others and benefiting from a diverse and competitive market of services, would be a real public good. To achieve this, central banks will need to cooperate,\u201d the BIS researchers concluded.<\/p>\n<\/blockquote>\n What is a central bank digital currency (CBDC)?<\/a><\/p>\n<\/blockquote>\n\n
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