2/4  BIS central bankers' speeches  Innovation in information technology and central bank payment and settlement systems Meanwhile, innovation in information technology is making the cost of handling cash more visible. In addition, while virtual currencies such as Bitcoin have emerged under the trend of FinTech, some people argue that central banks should consider issuing digital currencies, which could partially replace banknotes.
Such arguments would mean applying digital technology even to banknotes, which have always been based on paper-based technology. This could have a substantial impact on the traditional concept of banknotes. At the same time, central bank digital currency (CBDC) is one of the issues in considering the role of banknotes and central bank payment and settlement systems.