National Cryptocurrencies Is Not a Joke Anymore
Why National Cryptocurrencies Is Actually a Good Idea
The central banks of Canada, Great Britain, Japan, the European Union, Sweden, and Switzerland can share their experiences on possible options for using national digital money. The Bank for International Settlements (BIS) announced the creation of a working group with the central banks of the European Union, England, Sweden, Switzerland, Japan, and Canada. Regulators will explore the possibility of using national cryptocurrencies (CBDC) – economic, functional and technical options, and exchange knowledge about the new technology.
The group will work together with relevant institutions and forums, in particular, the Financial Stability Board and the Committee on Payments and Market Infrastructure (CPMI). The latter structure will examine the issue of security and payment efficiency. The working group will be led by Benoit Quare, head of the BIS Innovation Center, and Jon Cunliffe, deputy head of the Bank of England.
Governments Want to Join Crypto As Soon As Possible
Active discussions about the possibility of issuing national cryptocurrencies began after last summer Facebook announced its own payment system on the blockchain – Libra. Many European countries, including France and Germany, announced their readiness to completely ban the digital money of a social network on its territory.
Last October, German Vice-Chancellor and Minister of Finance Olaf Scholz approved the idea of CBDC. They said that Germany does not plan to let the cryptocurrency space be led by Russia, China, or private suppliers. The French deputy finance minister holds the same opinion.
The head of the central bank of Sweden, Stefan Nils Magnus Ingves, also spoke about national cryptocurrencies and Libra. He noted that the Facebook project was an incentive to reform the economy.
Switzerland, China, and North Korea are also preparing to release the national cryptocurrency. And the BRICS countries are discussing the possibility of creating a single payment system using cryptocurrency to evade the US dollar.
However, some countries are not going to release cryptocurrencies. At least, some demonstrate a silent strategy. South Korean authorities, for example, believe that advanced economies do not need their own cryptocurrencies. Hong Ken Central Bank, Financial Settlement Director of the South Korean Central Bank, assured that the country’s infrastructure has all the advantages that the new technology offers. The US is also not ready to create a digital dollar. According to Finance Minister Stephen Mnuchin, there is no need for the Fed to deal with the CBDC in the next five years.