Benoit Kere, head of innovation at the Bank for International Settlements, is confident that cryptocurrencies and stablecoins are already a threat to credit institutions.
Benoit Kere, head of the Bank for International Settlements (BIS) innovation hub, told the Financial Times that central banks need to accelerate in developing their own digital currencies (CBDCs).
According to Kere, regulators should create alternatives to private financial instruments as soon as possible, since the decentralized finance industry (DeFi) and stablecoins may compete with traditional banks in the future.
The head of BIS noted that digital assets already pose a threat to credit institutions. Now regulators need to decide how to respond to this threat, Kere explained.
“Regulators should act while the existing system is still functioning – act now,” Kere added.
Central banks risk losing their leading position in the financial system, since cryptocurrencies and stablecoins already exist, and the development of CBDC will take years more, the head of BIS emphasized.
In March of this year, Kere already announced that bitcoin can be considered an investment instrument. However, in his opinion, the main cryptocurrency did not pass the test for the status of a payment instrument, as it is too volatile.
