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| Global central banks are studying together the future digital currency |
The Bank of England and the European Central Bank announced on Tuesday that large central banks are investigating the issue of their own digital currencies when there is growing disagreement about the currency’s future and control.
After the Facebook campaign, central banks all over the world stepped up the possibility of issuing their own cryptocurrencies. Facebook is the largest social network in the world with over 2.5 billion active users.
For major central banks, although project details are still rare, China has become a pioneer in creating its own digital currency. "The group ... will assess options for economic, functional and technological design, including cross-border interoperability and the exchange of knowledge about emerging technologies," the central bank said in a statement.
The digital currency of the central bank is traditional, but it is issued and managed digitally by the country's central bank. In contrast, cryptocurrencies such as Bitcoin are created by solving complex mathematical puzzles and are not centrally managed, but by different online communities. The common point is that cryptocurrencies and central bank digital currencies rely to varying degrees on technology (blockchain). This is a digital record that allows multiple parties to record transactions and access them in real time. ,
Last year, Bank of England Governor Mark Carney pointed to the dollar's destabilizing role in the global economy, saying that the central bank may need to work together to create its alternative reserve currency. According to Carney, the best solution is a multi-polar and diversified financial system that technology can offer. He added that Libera coin on Facebook is the most used digital currency, but it faces a number of fundamental issues that must be resolved.