Top Global Banks including BOE, BOJ, ECB and Swiss National Bank launch a commission to asses the potential use cases of a central bank digital currency.
The Bank of International Settlement announced the formation of a new group to oversee a possible launch of a central bank digital currency (CBDC) in their respective jurisdictions. The commission includes the Bank of International Settlements (BIS) and top central banks in the world such as the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Sveriges Riksbank, and the Swiss National Bank.
According to the report by the BIS Group, the commission will focus on the economic, functional and technical nature of a CBDC in improving efficiency in the financial industry. The commission will be chaired by the current Head in BIS Innovation Lab, Benoît Cœuré, and Jon Cunliffe, Deputy Governor of the Bank of England and Chair of the CPMI.
The exciting prospect of a possible launch of sovereign currencies, however, is far from being a reality yet as various regulation loopholes will need to be filled. For instance, China gave the green light to develop its digital currency back in 2018 but the country is yet to actualize the dream. If the newly-set up commission is to launch any digital currencies, much deliberation with institutions in the field and forums will need to be set up.