French economist and head of the Bank for International Settlements’ Innovation Hub Benoit Coeuré has urged central banks to respond swiftly to the booming cryptocurrency industry by developing Central Bank Digital Currencies CBDC.

Coeuré said stablecoins, Defi platforms, and big tech firms are challenging the traditional financial model.

Coeuré stressed that central banks, which are already lagging behind in the digital currency system, have work to do, especially in delivering price stability and financial stability, which are some core features of Defi and stable coin.

“Central banks have a job to do — delivering price stability and financial stability — and they must retain their ability to do it, they have to act while the current system is still in place — and to act now,” he said while delivering a speech titled Central bank digital currency: the future starts today.

In the last 24 hours, bitcoin is down by 3.76%, with a current price of $45,280.54 as at the time of writing this. Within 24 hours, bitcoin dropped to $45,024.10 low and $47,396.98 high. The trading volume of bitcoin in the last 24 hours is $1.03B. The current market capitalization of bitcoin is $851.78B. Currently, $18.81M bitcoins is in circulation.

Stats and Image from Coin Desk

Coeuré, the former Executive Board official of the European Central Bank, said cryptocurrencies and Bitcoin already have a first-mover advantage and said central banks still have a long way to go.

“Central bank digital currencies will take years to be rolled out, while stablecoins and cryptoassets are already here. This makes it even more urgent to start,” Coeuré added.