Central bank digital currency (CBDC) international activity warms up, the central bank of Ukraine takes the lead

This year is a big year for the central bank's digital currency (CBDC) activities. The development status of the CBDC and when to launch it have become hot topics in the international monetary and financial field.

On February 21, in the Ukrainian capital Kiev, a small-scale seminar was organized by the Central Bank of Ukraine under the theme "Central Bank Electronic Money: New Opportunities for Payment". Participants included representatives from the World Bank, the International Monetary Fund, and international organizations and central banks such as Canada, South Africa, Finland, the Netherlands, and Uruguay. Representatives of the Fintech community such as Attic Labs of the Central Bank of Ukraine's e-hryvnia pilot. This is the first official conference hosted by CBDC this year.


Seminar monogram

Although the central bank of Ukraine is a small country and has not been very peaceful at home and abroad in recent years, it has gone faster in the development of CBDC. In 2016, the pilot project of the central bank's digital currency E-Hryvnia was launched, and 5,000 E-Hryvnia were attempted. During the project, a blockchain platform for issuing CBDC as a retail payment tool was tested, and the resulting macro The economic effects were analyzed and researched, and the development of a business model was started.

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Governor of the Central Bank of Ukraine Yakiv Smolii

In his opening speech, Governor of the Bank of Ukraine Yakiv Smolii stated:

"In 2020, the existence of CBDC is already an unchangeable fact. The only question is who will issue it and when."

The expression of this passage is exactly the same as the theme host of the CBDBDC in Davos.

Representatives of the World Bank and the International Monetary Fund reported the overall situation of global CBDC development at the meeting.

Representatives of the Bank of Canada and South Africa reported to the case study "CBDC for Interbank Settlement" and representatives of the Bank of Sweden and Uruguay provided the case of "CBDC as a cash equivalent".


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Representative of the Swedish central bank reports the development of e-krona

The meeting had group discussions on two topics. Representatives of several national central banks participated in the "CBDC Prospects and Opportunities" group discussion. The Ukrainian central bank and some domestic commercial banks participated in the discussion of "CBDC's payment prospects in Ukraine".

Delegates' speeches are not all overwhelming. For example, the representative of the Bank of Canada, Scott Hendry, said: Compared with the current efficient and centralized system, DLT does not seem to bring more benefits. Commenting on the outlook for e-hryvnia, the governor of the Central Bank of Ukraine also said: When we are convinced that it is not only technically feasible, but will not affect prices and financial stability, we will consider issuing e-hryvnia.

The purpose of holding such meetings is to provide a platform for central bank representatives, relevant stakeholder groups, and various professionals to share the possible impact of exchange and issuance of CBDC and how to supervise it.

In addition, according to the Japan Times report, the Japanese Ministry of Finance, the Financial Services Agency and the Bank of Japan have recently held several meetings to discuss the economic impact of digital currencies and strengthen cooperation in CBD research and development analysis. At the G20 Saudi meeting on the 22-23 of this month, the topic of the CBDC will inevitably appear on the agenda. According to news from European Central Bank President Lagarde, the first day of the meeting touched on the issue of digitalization of the global economy.

It seems that the international situation of this year's research and development of CBDC is no longer just talking and practicing, but you have to chase after me, how far you can go depends on the determination of the authorities.