Leading Central Banks To Form A Group To Study Digital Currencies
Several large central banks have entered into cooperation to explore the possibilities for issuing and using their own digital currencies, writes Reuters, citing a statement from the Bank of England and the European Central Bank (ECB).
The central banks of the UK, Canada, Japan, Sweden, Switzerland and the ECB will share expertise in a new group led by former ECB board member Benoit Kere and supported by the Bank for International Settlements (BIS).
The group will “define the areas of application of digital currencies of central banks, as well as economic, functional and technical preferences in development, including cross-border compatibility”.
In addition, the group will coordinate its efforts with relevant institutions and forums, in particular with the Financial Stability Board and the BIS Committee on Payments and Market Infrastructure..
Previously, the Bank of Sweden and the ECB have already shown significant interest in the topic of national digital currencies. Bank of England Governor Mark Carney spoke positively of their prospects and admitted that a central bank-backed digital currency could compete with the US dollar on the world stage. The People’s Bank of China is the most active in this area, which has been developing its digital currency for several years and recently reported on the completion of the stage of its “high-level” preparation..
The ECB at the end of last year presented a design solution for the central bank‘s digital currency, which can use “coupons for anonymity” to provide a trade-off between users’ need for privacy in payments and the need to control cash flows..