Central bank group to assess potential cases for central bank digital currencies

I wrote this piece on how central banks after ignoring and threatening digital currencies have warmed upto the idea of central bank digital currencies. It reminds me of this famous hindi movie song.

Yesterday 6 central banks signed an agreement to study digital currencies:

The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, Sveriges Riksbank and the Swiss National Bank, together with the Bank for International Settlements (BIS), have created a group to share experience as they assess the potential cases for central bank digital currency (CBDC) in their home jurisdictions.

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. It will closely coordinate with the relevant institutions and forums – in particular, the Financial Stability Board and the Committee on Payments and Market Infrastructures (CPMI).

The group will be co-chaired by Benoît Cœuré, Head of the BIS Innovation Hub, and Jon Cunliffe, Deputy Governor of the Bank of England and chair of the CPMI. It will include senior representatives of the participating institutions.

Sveriges Riksbank will be represented by First Deputy Governor Cecilia Skingsley.

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