Central banks, BIS partner to study digital currencies

The Bank of Canada, Bank of England, Bank of Japan, European Central Bank, Sveriges Riksbank and Swiss National Bank, together with the Bank for International Settlements (BIS) have created a group to share experiences as they assess the potential cases for Central Bank Digital Currency (CBDC) in their home jurisdictions.
In a press release, the BIS said the group would assess CBDC use cases; economic, functional and technical design choices, including cross-border interoperability; and the sharing of knowledge on emerging technologies.
The group is also expected to closely coordinate with the relevant institutions and forums – in particular, the Financial Stability Board and the Committee on Payments and Market Infrastructures (CPMI).
It will be co-chaired by BOE deputy governor, Jon Cunliffe, and a former-ECB official, Benoit Coeure — now head of the BIS’s innovation hub.
The debate around a digital currency backed by central banks intensified last year when BOE Governor, Mark Carney, laid out a radical proposal for an overhaul of the global financial system that would eventually replace the dollar as a reserve currency with a Libra-like virtual one.

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