CENTRAL bank digital currencies (CBDCs) are a crucial element of innovation for central banks around the world, especially since there is proven appetite for such products in certain parts of society, said Agustin Carstens, general manager of the Bank for International Settlements (BIS).

The development of various digital currencies – such as Bitcoin – over the past few years implies a need for digital representations of money, and it is the job of the central banks to meet this need, Carstens said.

“(The development of CBDCs) is part of the evolutionary process of the central bank doing its work.