The payments landscape for community banks is changing rapidly as traditional payments converge with new instant payment systems and emerging cryptocurrencies. It is critical for Community Banks to maintain awareness of developments in the payments space to assess new opportunities, mitigate risks, and ensure that their payment strategy aligns with overall business plans.
A future central bank digital currency system would need to involve both public and private actors to ensure interoperability with the broader payment system, according to new reports from the Bank for International Settlements.
Details: Issued with the Federal Reserve and other central banks, the reports explore private-public collaboration, how a CBDC could best serve consumers, and the possible effect of CBDCs on banking intermediation and resilience.
Fed Research: The BIS release follows reports that the Federal Reserve Bank of Boston is nearing the completion of a research project on a U.S. CBDC, with Fed governors and other policymakers divided on the issue.