Central bank money anchors trust as payment systems diversify
Central bank money underpins trust as payment arrangements diversify, according to the Bank for International Settlements (BIS) Committee on Payments and Market Infrastructures (CPMI). Its report identifies four complementary central bank policy roles.
New arrangements transmit new risks
Technology, changing demand and new providers are transforming payments.
The CPMI examines fast payment systems, non-bank providers, tokenised deposits, stablecoins and programmable platforms.
These offer efficiency, competition and innovation but create interdependencies and alter credit, liquidity, operational and cyber risk transmission.
Central bank money remains the safest, most liquid settlement asset for systemically important systems and supports convertibility at par.
Private payment services support innovation and user choice.
Fabio Panetta, Banca d'Italia Governor and CPMI Chair, said central banks must understand change and help shape it where necessary.
The report covers interactions among central bank, commercial bank and non-bank money.
Four roles require coordinated choices
As issuers, central banks consider access to accounts, services and terms.
As operators, they modernise infrastructure or develop platforms, balancing resilience, innovation and implementation risks.
As overseers, they assess whether stablecoins and tokenised arrangements perform infrastructure-like functions, examining systemic importance, governance and operational resilience.
As catalysts, they convene stakeholders, tackle collective action problems and support market solutions, standards and common practices.
Actions in one role can affect outcomes in another.
Cooperation across evolving systems
The report builds on the Committee on Payment and Settlement Systems' August 2003 framework.
It follows the BIS and CPMI October 2024 tokenisation report to the G20. With policies varying across jurisdictions, the CPMI calls for holistic, adaptable choices and sustained international cooperation.