The central banks of Canada, England, Japan and Switzerland have teamed up with the European Central bank and the Bank for International Settlements (BIS) to review how a digital currency owned by each central bank could come into existence and what could be its use cases.
The group will assess CBDC use cases in different sectors.
The central banks of different countries have formed a group to assess the possibility and use cases of a central bank-backed digital currency. The Bank for International Settlements (BIS) said in a statement that “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.”
Bank of England governor Mark Carney had earlier promoted CBDC, saying that it could dampen the domineering influence of US dollar on global trade.
China closes in to launch its national digital currency.
China is all set to become the first major nation to have its centralized national digital currency. The country has been working on its national digital currency, dubbed as DC/EP, from the last five years. Recently, China revealed that it had completed its test run of the digital currency in selected cities. An official from the People’s Bank of China said that they would steadily promote the launch and application of digital RMB.