A group of central banks across the globe has decided to come together to form a joint research group tasked with exploring the development and implementation of central bank digital currencies (CBDC), Cointelegraph reports on January 27th.
The new group will comprise the central banking institutions from Canada, the United Kingdom, Japan, European Union, Sweden and Switzerland with the addition of the Bank for International Settlements (BIS). According to a statement from the Bank of England “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).”
Central bank digital currencies have been in the focus of the financial circles ever since Facebook made the sudden announcement of launching its own cryptocurrency to facilitate payments across several platforms. It was quickly followed by China announcing work on its own digital currency and made other countries take note of the developments, pushing them to act or risk falling behind. The banks comprising this new development group account for a large percentage of the world economy, and the choice of going towards the implementation of digital currencies in those countries has the potential to shift the entire payments landscape towards digital transactions.