Global central banks are merging up to prospect digital currencies

Published:

On: Jan 2020

Some of the world’s biggest central banks are partnering up on a campaign to evaluate digital currencies. According to the buzz, the central banks of Japan, Britain, Sweden, the euro zone and Switzerland have teaming up with the bank of International Settlements(BIS) in order to assess desirable use cases for such kind of currencies.

The issue of central bank digital currencies (CBDC) has increased momentum among key institutions since social media giant Facebook declared plans previous year to describe a cryptocurrency named Libra, which would be associated with a bunch of currencies and government charge to maintain a stable value. But the Facebook-based project has struggled intense administrative pushback, along with central bankers from the chairman of Federal Reserve Jerome Powell to the board member of European Central Bank Benoit Coeure urged on the anticipated risks of libra to the financial stability of the globe.

In a joint statement, the worldwide central banks stated that they would create a new group that co-led by Coeure who is also chief of the own initiative of BIS on digital currencies and the deputy governor of Bank of England Jon Cunliffe.

They told that, the group will prompt several cases including functional as well as technical structural choices, economic alongside cross-broader functionality and the sharing of knowledge on growing technologies.

Reportedly, the China has been tracing to problem its own central bank digital currency. Beijing is also seeking to accelerate the manufacturing of blockchain technology and the digital registry that pinpoints numerous cryptocurrencies, including bitcoin. Furthermore, the former chairman of Commodity Futures Trading Commission Christopher Giancarlo currently declared plans to raise for a digital category of the dollar