The central bank of Canada is in the crypto news today along with the banks of the United Kingdom, Japan, European Union, Sweden and Switzerland. These are the six major central banks which created a group with the Bank for International Settlements (BIS) which will jointly research the central bank digital currencies (CBDC).
As a press release published by the Bank of England confirmed on January 21, the aforementioned institutions will share their combined experience along with other group members as they study the potential use cases for CBDCs in their respective 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 announcement reads.
The six major central banks will lead the research group which will be co-chaired by the head of BIS Innovation Hub Benoit Coeure and Jon Cunfliffe, a Deputy Governor of the Bank of England and the chair of the Committee on Payments and Market Infrastructure. This group will also include senior representatives from the participating central banks and the BIS.
Additionally, we can see that the six major central banks started researching, piloting and actively pursuing various forms of digital currencies including CBDCs. As the altcoin news outlets also reported, the president of the European Central Bank Christina Lagarde supports the institution’s efforts in developing a CBDC. Lagarde recently noted that there is an urgent demand for fast as well as low-cost payments and that the ECB should take a leading position along with the six major central banks instead of remaining the observers of a changing world.
Even though most of the other central banks are now discussing whether the implementation of a CBDC is a good idea, the People’s Bank of China recently announced that it completed the top-layer design and joint testing of the digital yuan project.
Meanwhile, the market has stabilized and is finally above the $240 billion mark as Bitcoin (BTC) reaches $8,670 and ETH is stable at $168.
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