The Bank of England has teamed up with the central banks of Canada, Japan, the EU, Sweden and Switzerland to explore the possibility of launching a central bank digital currency (CBDC).
They formed a working group with the Bank for International Settlements (BIS), through which they can share their expertise and take the necessary procedures in this regard.
“The group would assess CBDC use cases; economic, functional and technical design choices, including cross-border interoperability; and the sharing of knowledge on emerging technologies,” Bank of England said in a press release today.
Several central banks across the globe started to explore different types of cryptocurrency, including the CBDC.
“The BoE has also trialled various cryptocurrencies initiatives before, but advances in blockchain technology may mean this “now might be the right time to try again,” said to Bradley Rice, senior associate at law firm Ashurst.
It was earlier reported that Christine Lagarde, president of the European Central Bank (ECB), plans to actively develop its central bank digital currency (CBDC) to facilitate cheaper and quicker payments for individuals and corporates.
“The prospect of central bank initiatives should neither discourage nor crowd out private market-led solutions for fast and efficient retail payments in the euro area,” she said.
Although several central banks are studying the CBDC project, the People’s Bank of China has announced ending the test of the digital renminbi.