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- The heads of six central banks are going to attend a meeting alongside the Bank for International Settlements in April.
- The six central banks are decided to create a group with the Bank for International Settlements in January.
- China is leading the research on central bank currencies.
The heads of six central banks are going to attend a meeting alongside the Bank for International Settlements in April. The primary purpose of this meeting would be discussions about creating their digital currency. The idea for such a currency came as a response to Libra and the digital Yuan.
China is still working on its Digital Yuan. However, Facebook’s Libra project is not going so well. Most of the initial members had left the project even before the currency was even released. The latest company to leave the group was Vodafone.
Even Mark Zuckerberg, CEO of Facebook, has said that Libra and Facebook are two separate entities. So, it seems that the central banks will have to worry about one less private cryptocurrency.
The six central banks are from England, Switzerland, Sweden, Canada, and Japan, and the European Central Bank decided to create a group with the Bank for International Settlements in January with the agenda of creating central banks’ digital currencies.
They are also working to create a standard that would govern the use of digital currencies while making an international payment between the banks.
While the group is doing research on digital currency, Masazumi Wakatabe, deputy governor of the Bank of Japan, said, it’s quite natural to consider how to make international transactions more convenient. The introduction of digital currency would also help with issues such as the high fee that needs to be paid while making international transactions.
China is leading the research on central bank currencies. It is believed to have the capacity to transform the financial system, and China is already developing its digital Yuan. The Bank of Japan has no plans to introduce its own currency at the moment.
The senior representatives of these banks, which include deputy governors and directors along with the working officials, will prepare a report before they meet during an international conference in Washington. The interim report will be released in June, and the final report is scheduled to come during Autumn.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
