The central banks of Switzerland, Britain, the euro zone, Japan, and Sweden have joined to review potential use cases for digital currencies.
The new group, yet to be named, will be co-chaired by Benoit Coeure (ECB Board Member) and Jon Cunliffe (Bank of England Deputy Governor).
“The group will assess CBDC use cases; economic, functional and technical design choices, including cross-border interoperability; and the sharing of knowledge on emerging technologies,”
As reported by CNBC, the topic of central bank digital currencies (CBDC) has gained momentum among major institutions since Facebook announced plans last year to introduce a cryptocurrency called libra, which would be tied to a basket of currencies and government debt to hold a stable value.
But the Facebook-led project has faced intense regulatory pushback, with central bankers from Federal Reserve Chairman Jerome Powell to European Central Bank Board Member Benoit Coeure warning on the potential risks of libra to global financial stability.
China has been racing to issue its own central bank digital currency, but its efforts in the space have so far been light on detail. Beijing is also looking to accelerate the development of blockchain technology, the digital ledger that underpins many cryptocurrencies, including bitcoin.
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