The Committee on Payments and Market Infrastructures (CPMI), hosted by the Bank for International Settlements, published an analysis on October 29 outlining four central bank roles in an increasingly diverse payments landscape: issuer, operator, overseer and catalyst. The framework considers stablecoins, tokenized deposits and programmable platforms alongside other payment innovations.
Central bank money serves as the foundation for trusted settlement, the CPMI said, while private payment services support innovation, competition and user choice. The analysis connects digital money to practical decisions over account access, infrastructure, oversight and coordination.
Central Bank Money as Settlement Anchor
According to the CPMI, central bank money provides the safest and most liquid settlement asset for systemically important systems. It also supports convertibility at par among different means of payment, meaning conversion at the same face value.
Private arrangements occupy a complementary role, with private entities developing services for different user needs and contributing competition, efficiency and broader access. The framework combines a common settlement anchor with room for different payment services and forms of private money.
Four Central Bank Roles
As an issuer, a central bank decides which entities can hold central bank accounts, which services they can use and the terms of access. These three elements are linked: eligibility determines who can use an account, while services and terms define the practical scope of that access.
As an operator, it considers modernizing existing infrastructure or developing new platforms. The CPMI places resilience, innovation and implementation risks together in that decision, noting that technical improvements must be considered alongside the challenges of introducing and operating new infrastructure.
As an overseer, it assesses whether emerging arrangements, including stablecoins and tokenized arrangements, perform functions similar to financial market infrastructures. Attention directs toward systemic importance, governance and operational resilience.
As a catalyst, it convenes stakeholders to address collective action problems, supports market solutions and encourages common practices and industry standards. This role brings coordination into the same framework as account provision, infrastructure operation and oversight.
Benefits and Risks of Payment Diversity
The committee considers the opportunities and risks of payment diversity together. More payment arrangements may improve efficiency, competition and innovation, but may also create new interdependencies and introduce or amplify credit, liquidity, operational and cyber risks.
The CPMI emphasizes considering policy tools together, adaptability and sustained international cooperation. It also recognizes that central bank policies may differ across jurisdictions.
