Also: โTiered remunerationโ means no privacy and negative interest rates.
The IMF is warning that with all these CBDCs about to launch, there need to be global inter-operability standards between them all, and theyโre working on a global platform to facilitate just that.
Speaking at aย conference of African central banksย in Rabat, Morocco, IMF Managing Director Kristalina Georgieva said that there needs to be agreement among CBDC implementations,
โon a common regulatory framework for digital currencies that will allow global interoperability. Failure to agree on a common platform would create a vacuum that would likely be filled by cryptocurrenciesโ
Not to be outdone, the Bank of International Settlements (BIS) worked with seven central banks to publish YARP (Yet Another Research Paper) on CBDC policy, entitled โCentral Bank Digital Currencies: ongoing policy perspectivesโโฆ (*yawn*).
The central banks involved were: Japan, Sweden, Switzerland, England, the United States, Canada, and the European Union.
The paper isย mostlyย a snoozer:
โDevelopment of CBDC work requires careful consideration and engagement with a wide range of stakeholders, including the private sector and legislatorsโโฆ
โTo successfully meet its public policy objectives, a CBDC ecosystem should allow a wide range of private and public stakeholders to participate and, in doing so, deliver services which benefit end users.โโฆ
โThe complex design questions and the potential risks arising from the implementation of any CBDC require careful consideration.โ
Until you get to the rather innocuous sounding Annexes, like โBox 2: Legal Considerationsโ.
Thisย is where it starts to get interesting.
What are retail CBDCs, exactly?
The paper wonders: Are they cash? Deposits? Or something else entirely?
This is quite the question, because if CBDCs arenโt cash, there has to be a reason why they wouldnโt be. When you start to see where CBDCs are going: expiry dates, programability, social credit scores โ what weโre talking about is almost a kind of anti-cash (my observation, not the paperโs).
Further, the paper wonders, would there need to be changes to banking charters, legislation or evenย the constitutionsย of the countries issuing them:
โLegislation may need to be enacted or adjusted to specifically authorise the issuance and distribution of a retail CBDC (eg changes to central bank charters/statutes,ย legislationย in other areas related to paymentsย or to the constitution itself)โ
Byย Mark E. Jeftovicย