BIS CPMI Report Highlights Central Banks’ Role in Safeguarding and Innovating Payment Systems

The BIS Committee on Payments and Market Infrastructures (CPMI) released a new report, "The roles of central banks and central bank money in the evolving payment system," examining how technological advances, shifting user demands, and the rise of new payment service providers reshape payment ecosystems. The analysis confirms that central bank money remains the trust anchor, offering the safest, most liquid settlement asset for systemically important systems and enabling par‑convertibility across payment methods. It also notes that private sector innovations—such as fast payment systems, non‑bank providers, tokenised deposits, stablecoins, and programmable platforms—can boost efficiency and competition but introduce new interdependencies and risks. Central banks must therefore use a range of policy tools, stay adaptable, and collaborate internationally to manage these changes. The report builds on the CPMI’s analytical framework and underscores the complementary relationship between central bank money and private payment solutions, stressing that central banks cannot remain passive observers but must actively shape the evolving payments frontier.