The future of money and the payment system - what role for central banks?

Lecture by Mr Agustín Carstens, General Manager of the BIS, at the Princeton University, Princeton, New Jersey, 5 December 2019.

Central bank public goods are the foundation for more efficient and inclusive payments, says Agustín Carstens. (01:19)

Central banks are at the heart of the changes that are transforming the monetary and financial system. They pave the way for innovation by underpinning the public's trust in money. The role of central banks is to lay the foundations for a sound currency by maintaining the unit of account, guaranteeing the finality of payments, providing liquidity and conducting oversight - elements that can be described as "central bank public goods". Looking ahead, many types of payment solutions are conceivable, including central bank digital currencies (CBDCs), provided that central banks can continue to assure these goods. Regardless of the choice of technology, the stability of money and payment systems rests on the firm foundations set by central banks.