As central banks across the globe are now admitting they failed to keep inflation under control and by sharply rising rates threaten to push economies into recession, they now claim that they are the main source of trust in the monetary system.
The Bank for International Settlements (BIS), sometimes referred to as ‘the central bank of central banks’, is out with a new report where it bashes the crypto industry while promoting what it calls “a brighter vision of the future monetary system” through central bank digital currencies (CBDCs).
In the report, the BIS wrote that the monetary system of the future “must meet a number of high-level goals to serve society.” Specifically, the report stressed that a future CBDC must be “safe and stable,” and said “key entities must be held accountable for their actions.”
The BIS stressed that “at the heart of the monetary system stands the central bank” and “trust in the monetary system is ultimately
grounded in trust in the central bank.”
The institution is advocating for financial and payment “innovations grounded in trust in the central bank” and claims that “retaining this trust is at the core of central bank mandates.”