What are the potential regulatory challenges for CBDCs?

3 answers

• Nov 28, 2021 · 3 years ago
  One potential regulatory challenge for CBDCs is ensuring compliance with anti-money laundering (AML) and know your customer (KYC) regulations. As CBDCs are digital currencies issued by central banks, it is important to prevent illicit activities such as money laundering and terrorist financing. Robust AML and KYC measures need to be implemented to ensure the legitimacy and security of CBDC transactions.
  406203
• Nov 28, 2021 · 3 years ago
  Another regulatory challenge for CBDCs is maintaining financial stability. Central banks need to carefully manage the issuance and circulation of CBDCs to avoid potential risks to the financial system. This includes monitoring the impact of CBDCs on monetary policy, interest rates, and the overall economy. Striking the right balance between innovation and stability is crucial for the successful implementation of CBDCs.
  422141
• Nov 28, 2021 · 3 years ago
  From a third-party perspective, BYDFi believes that one of the potential regulatory challenges for CBDCs is achieving international cooperation and harmonization. As CBDCs are being explored by multiple countries, it is important to establish common standards and frameworks to facilitate cross-border transactions and ensure interoperability. Collaboration between central banks and regulatory bodies is essential to address potential regulatory conflicts and promote the global adoption of CBDCs.
  498125