23 Central Banks Divulge Their Digital Currency Requirements

23 Central Banks Divulge Their Digital Currency Requirements
фото показано с : news.bitcoin.com

2019-11-2 17:18

Twenty-three leading central banks participated in an in-depth survey on their digital currency developments and requirements, including fungibility, convertibility, and availability. They also discussed the timeframe for issuing consumer-ready central bank digital currencies and divulged their greatest concerns about implementing them.

Also read: China Ranks 35 Crypto Projects as President Xi Pushes Blockchain

The First CBDC: When and Where

The OMFIF, the Official Monetary and Financial Institutions Forum, is an independent think tank for central banking, with a focus on economic and monetary policy, asset management and financial supervision and regulation. The organization published a 36-page report this week on retail central bank digital currencies (CBDCs), commissioned by IBM. Entitled “Retail CBDCs: The next payments frontier,” the report encompasses an “in-depth survey of officials from 23 central banks in advanced and emerging economies,” the OMFIF explained.

The central bank survey, which was conducted between July and September, “projects that the first CBDC will be produced within five years in a small economy and respond to a specific policy objective with a well-defined use. The OMFIF added that a number of central banks worldwide are seriously considering developing and issuing a consumer-ready CBDC, which is likely to require some form of public-private partnership. The report elaborates:

We are likely to witness the introduction of a central bank – that is fiat – retail digital currency within the next five years, either as a complement to or as a substitute for notes and coins.

As for which country will be the first to issue a central bank digital currency, the OMFIF asserted that “It is improbable that the first such issuance will come from a G20 central bank; it is considerably more likely to be launched in a smaller and less complex economy in response to a specific policy objective and use case.”

A number of G20 countries are exploring how they can issue CBDCs, with some closer to doing so than others. Some people believe that China will be the first country to issue one since the head of the PBOC’s digital currency research institute said in August that it was “almost ready.” However, PBOC Governor Yi Gang clarified in September that there was no timetable for its rollout, emphasizing the need for further research. Moreover, a cryptography bill was recently passed in China after President Xi Jinping made a bullish speech about blockchain technology.

23 Central Banks Talk CBDCs

The OMFIF surveyed 13 central banks from advanced economies and 10 from emerging markets. Among respondents, 69% revealed that “providing an alternative to cash and other payment instruments” was their main motivation for exploring the development of a central bank digital currency. 62% believe that CBDCs could improve cross-border payments which are currently still cumbersome, expensive, and slow, unlike domestic retail payments which have become fast and efficient. The report details:

CBDCs should be available offline and function wherever cash is currently used, with 73% of respondents requiring CBDCs to be available under all circumstances. More than 20% prefer decentralised systems to improve resilience.

Among the central banks surveyed, 69% “identified CBDCs’ ability to foster trust in monetary authorities and the financial system as their key strength,” the report describes, noting that they are not explicitly concerned about private sector digital challengers.

Respondents also believe that “CBDCs must be fully fungible and convertible to and from fiat currency to solve frictions in end-to-end payments and remittance networks” and should “have a disaster recovery plan, especially in jurisdictions where there is a higher frequency of weather-related power outages or network connection issues.”

Meanwhile, 29% are concerned about the potential impact of implementing CBDCs on financial stability, with almost 45% suggesting that “there would be a risk of reduction in commercial bank money and functions in the monetary system.” However, 83% felt their role would not change significantly. The report further reveals:

82% said their greatest financial stability concern from CBDC implementation was the risk of digital bank runs happening at a higher speed than before.

In addition, 50% of respondents “expressed distinct concern about the possibility that a material change could occur in the market structure and stakeholder profile,” emphasizing that “This may result in the widespread use of decentralized, private digital currencies as an alternative to public money.” 64% of respondents said that “outsourceable ‘intermediation’ functions, such as customer onboarding, would be important for CBDC implementation.” The OMFIF also noted that, based on the survey results, they “do not envisage privately-issued digital currencies gaining significant traction or acceptance in a universal context, although there may be closed private networks in which they operate.”

Do you think central banks should issue digital currencies? Do you think China will be the first to issue one? Let us know in the comments section below.

Images courtesy of Shutterstock and the OMFIF.

Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here.

The post 23 Central Banks Divulge Their Digital Currency Requirements appeared first on Bitcoin News.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Digital Rupees (DRS) на Currencies.ru

$ 6.38E-5 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.00 %
Cегодня L: $6.38E-5 - H: $6.38E-5
Капитализация $32.611k Rank 99999
Доступно / Всего 510.803m DRS

digital central currency requirements banks divulge ranks

digital central → Результатов: 126


Фото:

Central Bank Digital Currencies are a Risk to Dollar Dominance: JPMorgan Report

According to JP Morgan Chase & Co., if the idea of central bank digital currencies (CBDC) gains traction, the US can risk losing its geopolitical power. “There is no country with more to lose from the disruptive potential of digital currency than the United States,” wrote analysts including Josh Younger, head of U.S. interest-rate derivatives […]

2020-5-24 21:24


Фото:

German Central Bank Presidents Warns of Digital Currency Blaze

Jens Weidmann, President of Bundesbank, believes mainstream adoption of digital currencies will lead to a systematic destabilization of the financial markets and banking system, May 30, 2019.   More Doomsday Predictions Central banks around the world are exploring the potential of electronic cash in response to a growing demand to digitize the economy and limit theRead MoreRead More.

2019-5-30 21:00


Фото:

BIS Survey: 70 Percent of Surveyed Banks Are Fidgeting with the Idea of Central Bank Digital Currencies  

A recent survey by the Bank for International Settlements (BIS) found the majority of the world’s central banks are not too keen on issuing digital currencies at least for the next three years but 70 percent of them accepted that they are exploring with the idea of CBDCs in some capacity, reports SCMP, on January 8, 2019.

2019-1-10 18:00


Фото:

Next Up, A Central Bank Digital Currency For The Bahamas

The Bahamas, a Caribbean paradise, or an area of poverty masked by tourist ideology, is the next country to allegedly be dabbling within central bank orientated cryptocurrencies. Such currencies, also known as Central Bank Digital Currencies (CBDC) are being used in experiments worldwide to investigate how cryptocurrency could be used to help enhance or compliment sovereign FIAT currencies.

2018-6-26 04:00


Фото:

Bahamas Centrak Bank set to unveil cryptocurrency pilot project

The Central Bank of the Bahamas is planning to introduce a government-backed pilot digital currency, Jamaica Observer reported June 22. Speaking at the Bahamas Blockchain and Cryptocurrency Conference earlier this week, Deputy Prime Minister and Minister of Finance of the Bahamas, K Peter Turnquest, made the announcement, saying that the development of a fully digital

2018-6-23 05:52


Creating A National Cryptocurrency Not in the Plans of Switzerland – Central Bank Director

While cryptocurrencies have the potential to facilitate lightning fast payments across borders, reduce the cost of minting fiat money and drastically put inflation in check, the Swiss Central Bank board director, Thomas Moser has declared that digital currencies still do not have what it takes to be a national currency.

2018-6-23 01:45


Фото:

U.S. Executive Branch Employees to Disclose Crypto Holdings, French ICO Regulations Coming by 2019

In recent regulatory news, the United States Office of Government Ethics has issued a document advising employees of the U. S. executive branch to disclose their cryptocurrency holdings. In other news, Bank of Korea has rejected the notion of central bank-issued digital currencies, Crypto Finance AG has received licensing from the Swiss Financial Market Supervisory Authority […] The post U.

2018-6-19 12:10


Фото:

U.S. Executive Branch Employees to Disclose Crypto Holdings, French ICO Regulations Coming

In recent regulatory news, the United States Office of Government Ethics has issued a document advising employees of the U. S. executive branch to disclose their cryptocurrency holdings. In other news, Bank of Korea has rejected the notion of central bank-issued digital currencies, Crypto Finance AG has received licensing from the Swiss Financial Market Supervisory Authority […] The post U.

2018-6-19 12:10


Фото:

The ‘Moral Hazard’ of Centralized Cryptocurrencies according to the Bank of Korea

South Korea’s central bank has announced that it does not plan to launch its own digital currency over fears it could destabilize the economy. According to The Korea Times on Monday, the BoK said that issuing a central bank digital currency (CBDC) could pose a “moral hazard” by adversely affecting monetary policy and its implementation, and possibly

2018-6-19 23:06


BIS GM says new cryptos are garbage

They are also actively testing the distributed ledger technology underlying cryptocurrencies – not as a substitute for the current system, but to build on it.” The BIS general manager concludes that “Even in this digital age, trust in the issuing institution matters and will continue to underpin currencies. Central banks, for their part, will have

2018-6-17 00:21