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Central banks to assess potential digital currencies

Wednesday 29 January, 2020

The European Central Bank has announced that it will assess potential cases for central bank digital currencies (CBDCs) along with other central banks.

Central bank group will assess CBDC use cases; economic, functional and technical design choices, including cross-border interoperability; and the sharing of knowledge on emerging technologies.

However, that doesn't mean private enterprises can’t join the party, said President Christine Lagarde, according to CoinDesk. The ECB wants to play an active role in cryptocurrencies. As businesses and individuals make more cross-border payments round the clock, Lagarde said the bank would continue looking into ‘the feasibility and merits of a CBDC’.

EBC is part of a group made up of the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Sveriges Riksbank, the Swiss National Bank, and the Bank for International Settlements (BIS).

The group will be co-chaired by Benoît Cœuré, Head of the BIS Innovation Hub, and Jon Cunliffe, Deputy Governor of the Bank of England and Chair of the CPMI.