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| Central banks are assessing the possibility of issuing their digital currencies |
The central bank is discussing how to find its own virtual currency, and the central bank has now proposed a broad framework for determining how this system would work.
Previously, Facebook shocked policymakers with its plan to launch a digital currency last year.
The Bank for International Settlements and seven central banks, including the Federal Reserve, the European Central Bank and the Bank of England, have released a report outlining some of the key requirements for digital currencies or central bank digital currencies from the central bank.
One of the central bank’s recommendations is that the central bank’s digital currency should supplement liquidity rather than replace it, and that the central bank support the central bank’s monetary and financial stability.
The report states: (CBDC), in addition to its role in the private sector, should be as safe and cheap to use as possible.
When the CBDC report was released, many central banks around the world were searching for their own digital currency.
The cryptocurrency has been scrutinized by tax officials who fear it may open the door to illegal activities such as money laundering.
The Chinese central bank has partnered with some private sector companies to test electronic money used for many years, and digital wallets such as (Alipay) and (WeChat Pay) have become widely used in China.
Swedishbank has also partnered with the consultancy Accenture to test the proposed krona exchange rate.
Benoit Coeure, Innovation Officer at the Bank for International Settlements, said designs that provide these features can use more flexible, efficient, comprehensive and innovative payment methods.
He added: Given national priorities and circumstances, the CBD cannot be finalized, and our report provides a starting point for the further development of a workable CBD.
It should be noted that these central banks have not yet taken a position on the issue of digital currencies and are still studying whether these virtual currencies are feasible.
Supporters of cryptocurrencies claim that these currencies can increase financial inclusion by attracting more people to bank accounts. However, there are concerns that this will exclude commercial banks.