Joachim Nagel, President of the Deutsche Bundesbank and a member of the ECB, underscored the pressing need for central banks to reevaluate their operational frameworks and swiftly embrace central bank digital currencies (CBDCs). Speaking at a distinguished panel during the Bank for International Settlements (BIS) Innovation Summit on May 6, Nagel voiced apprehensions about the uncertain future confronting central banks, acknowledging a significant shift in perspective over time.

Nagel emphasized the imperative for central banks to adapt to the changing landscape, identifying distributed ledger technology (DLT) as a pivotal tool in this transition. He stressed that DLT could facilitate the necessary evolution of central bank business models. Nagel also urged for expedited action, citing the waning appeal of physical currency and the necessity for central banks to reconsider their core offerings.

Echoing Nagel's stance, Bank of France governor Francois Villeroy de Galhau advocated for the integration of digital currencies into central bank operations. Villeroy emphasized the importance of modernizing central bank money to meet the demands of the 21st century, emphasizing the role of CBDCs in preserving financial system stability.

The European Central Bank (ECB) is currently in the process of developing a digital euro, aiming to finalize the project by October 2025. This initiative signifies a significant stride towards embracing digital currencies in contemporary financial landscapes. Concurrently, the Swiss National Bank (SNB) unveiled its pilot project, Project Helvetia III, focusing on exploring the utility of wholesale CBDC. Thomas J. Jordan, Chairman of the governing board of the Swiss National Bank, stressed the pivotal role of central bank money in upholding financial stability and underlined the importance of utilizing wholesale CBDCs for secure and efficient asset settlement.