Six major central banks are meeting in mid-April to discuss the prospective introduction of central bank digital currencies.
Expected to attend are the Chiefs of the Bank of Japan, European Central Bank, Bank for International Settlements, amongst others.
The governors of the ECB and several central banks will discuss conducting joint research into the possible introduction of digital currencies. Additionally, they would also discuss challenges facing the launch of digital currency such as cross-currency settlement and defense against cyberattacks.
The meeting is expected to hold in Washington DC and aimed towards the study of the application and feasibility of CBDC. This is also, happening on the sidelines of an International Monetary Fund (IMF) conference.
Namely, the six are; the Bank of England, Bank of Japan, European Central Bank, Bank of Canada. Also, including the Sveriges Riksbank (Sweden’s central bank), and the Bank of International Settlements.
Central banks to discuss findings
The six major central banks also announced a plan to share their results. This would be from a review of cases for issuing digital currencies, amid growing debate over the future of money.
Bank of Japan executive said central banks must respond flexibly to rapid digitalization to stay relevant as issuers of currency.
“In Japan, we don’t have plans to issue central bank digital currencies,” Takako Masai, BOJ member said in an interview.
However, she added, we need to make an effort, so we’re ready in case public demand for CBDC rises dramatically.
Notably, more awareness came to central bank’s digital currencies after Facebook Inc.’s announced plan to introduce its Libra Cryptocurrency. Also, coupled with the Chinese government move for a digital Yuan in which accelerated research into digital currencies.
Finalizing regulatory issues
US Federal Reserve board member Lael Brainard also said that active public-private sector discussions are necessary on regulatory matters to link to digital currencies and potential threats to the stability of financial systems.
“Given the dollar’s important role, it is essential that we remain on the frontier of research and policy development regarding CBDC (central bank digital currency),” Brainard said in a speech at a symposium in California.
China’s central bank, the People’s Bank of China, said in a statement from its working conference in January that it is progressing “smoothly” with the development of a government-backed digital currency.