Central banks from around the world are now working together on a so-called Central Bank Digital Currency (CBDC). The list of central banks involved in this project is long. Central banks from Canada, England, Japan, Sweden, Switzerland and other countries are taking part. The European Central Bank (ECB) and the Bank for International Settlements are also involved.
Focus on business, technology and international payment transactions
The Bank for International Settlements published a statement that defines the banks’ objectives more precisely. According to the press release, the focus is on economic, technical and international payment traffic issues. The press release states
“The Group will assess CBDC use cases; economic, functional and technical design decisions, including cross-border interoperability; and the exchange of knowledge on emerging technologies.”
The banking think tank is jointly managed by Benoît Cœuré and Jon Cunliffe, Deputy Governor of the Bank of England. Benoît Cœuré has been concerned in the past about Facebook’s own crypto currency, Libra. “It can’t be right that they develop financial services without rules, it’s too dangerous,” he said.
China already close to its own crypto currency
If the reporting is to be believed, China is already very close to having its own CBDC. A digital yuan is to be put into circulation by the Chinese central bank. At the end of 2019, Mu Changchun from the People’s Bank of China spoke about the Chinese crypto currency: “The coin is not for speculation. The currency is therefore different from Bitcoin or Stablecoins, which can be used for speculation or require the support of a basket of currencies. ”
Europe seems to lack such concrete plans. Nevertheless, François Villeroy de Galhau, governor of the French central bank, spoke last year about the importance of the central bank’s own digital currency. In his opinion, an e-euro should be one of the most important things to keep in mind in the future.