BIS: people keep keeping money under mattresses

16.11.2020 / Payment system news

Digital money will not replace banknotes, at least in the near future, said the head of the innovation center of the Bank for International Settlements (BIS) Benoit Kere, stressing that citizens still prefer to “keep money under mattresses” rather than keeping it in e-wallets.

According to the official, despite the fact that the world’s central banks have begun to develop national digital currencies, traditional assets are still a priority way of saving funds from citizens. Kere emphasizes that CBDC is just an electronic version of the usual banknotes. “The eurozone is showing increased demand for traditional money,” he said, noting that the G20 plans to simplify and reduce the cost of international payments, which are becoming increasingly ineffective over time.

At the same time, BIS is supportive of the expansion of payment options and the overall development of the financial sector in this direction: “If you want to pay with bitcoins, why not, if you understand and accept the risks associated with this active cryptocurrency, then there is no reason do not work with a new asset, “the agency’s website says.