BIS: No rush to issue e-money

LONDON: Most central banks have no plans to issue a digital version of their currency after studies left them unconvinced of the merits of e-money, a survey by the Bank for International Settlements (BIS) showed.

Central banks have warned investors they could lose money on privately minted cryptocurrencies like bitcoin, which have taken a hammering in recent months.

The survey from the BIS, a global forum for central banks, underscored policymaker caution over issuing central bank-backed digital currencies (CBDC).

“At this stage, most central banks appear to have clarified the challenges of launching a CBDC but they are not yet convinced that the benefits will outweigh the costs,” the BIS said.

Responses from 63 central banks that represent over 90% of global economic output and 80% of the world’s population showed that much of the work done so far is “conceptual”. — Reuters