A number of major central banks have joined the Central Bank's Digital Currency (CBDC) Research Group with the support of the Bank for International Settlements (BIS). Members of the group are Bank of Canada, Bank of England, Bank of Japan, European Central Bank, Bank of Sweden Riksbank, Swiss National Bank.
According to the press release of the Bank of England, the mentioned institutions will share their experience with other members of the group, and will study possible cases of the Central Bank's Digital Currency (CBDC) in the relevant areas of law. Moreover, it is planned to evaluate options for using CBDC, options for economic, functional and technical design, including cross-border compatibility and the exchange of knowledge about new technologies. The Group will closely coordinate its activities with relevant institutions and bodies, in particular with the Financial Stability Board and the Committee on Payments and Market Infrastructure (CPMI).
The Bank of Sweden Riksbank and the European Central Bank already have experience in developing their sovereign digital currencies. The Bank of Canada and the Swiss National Bank have also studied CBDC for some time. In August, the head of the Bank of England, Mark CARNEY, said that a digital currency supported by the central bank could replace the US dollar as a global hedging currency.
Image courtesy of Central Banking