The head of the Bank for International Settlements believes that the role of governments of different countries will be limited in issuing CBDC compared to private businesses

▶ The head of the Bank for International Settlements believes that the role of governments of different countries will be limited in issuing CBDC compared to private businesses

The head of the Bank for International Settlements is confident that CBDC will be a key prerequisite for innovation in financial systems. This opinion was expressed by the head of BIS, Agustin Carstens.

“There are now wholesale forms (digital central bank reserves) and retail forms (digital banknote). And it is becoming increasingly clear, at least to me, that these new forms of money will be at the core of the future financial system,” Carstens said.

He believes that the role of governments of different countries will be quite limited in the issuance of CBDC compared to businesses.

“And these activities of private companies do not have to be carried out in isolation — we can share knowledge,” he added.

Earlier, BIS, regulators in France, Singapore and Switzerland announced success in completing testing of international trade transactions and settlements in wholesale CBDC.

But the famous lawyer John Deaton, who defends the rights of crypto companies, believes that the US authorities will approve Bitcoin ETFs by the end of this year. After this, within 18 months the price of the first crypto coin may increase significantly.

Deaton is confident that the SEC may soon give the green light to spot ETFs for the first digital currency. Such an initiative could be an ideal combination with the news of a future Bitcoin halving. In addition, the Fed intends to reduce interest rates in the middle of next year, Deaton said.

According to him, upcoming events will be a prerequisite for the price of BTC to soar, which in the future could rise to $220,000. This could happen within 18 months after the SEC approves the BTC-ETF.

In addition, the lawyer admitted that in 2025 the legislation regarding digital assets will undergo significant changes. Changes may occur in the administration of the American president, and the authorities will be ready to revise the rules for cryptocurrencies.

What do you think about this?