Six major central banks such as Britain, Japan and Europe hold a group to explore fiat digital currencies, China is temporarily in a leading position

According to Babbitt on January 22, the Bank of England (BoE) has officially announced that it will explore potential use cases for the central bank's digital currency (CBDC).

According to a statement released by the central bank today, the Bank of England has set up a group with the Bank of Canada, the Bank of Japan, the European Central Bank, the Swedish Central Bank and the Swiss National Bank to discuss central bank digital currency (CBDC).

(Picture from: tuchong.com)

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It is reported that the group will be overseen by the Bank for International Settlements (BIS) and chaired by Benoit Coeure, head of the BIS Innovation Centre, and Jon Cunliffe, deputy governor of the Bank of England.

The six central bank groups and the Bank for International Settlements (BIS) mentioned in the announcement:

"The group will evaluate CBDC use cases, economics, functional and technical design choices, including cross-border interoperability, and share knowledge of emerging technologies."

The Bank of England said that the group will also coordinate closely with relevant agencies and forums, especially the Financial Stability Board and the Payment and Market Infrastructure Committee (CPMI).

Competition for central bank digital currencies has become fierce, and China is in a leading position

It is reported that in the group of six central banks, at least two central banks (the Swedish Central Bank and the European Central Bank) have been developing sovereign digital currencies, and the Bank of Canada and the Swiss National Bank have also studied the CBDC for a period of time.

The entry of the Bank of England and the Bank of Japan seems to be a new development. In August 19, Mark Carney, the governor of the Bank of England, said that the digital currency supported by the central bank may replace the US dollar as a global hedge currency.

The European Central Bank President Lagarde is also optimistic about the CBDC. Earlier this month, Lagarde stated:

"If physical cash eventually declines, the CBDC may provide a means of exchange for citizens."

According to theblock statistics, at least 18 central bank institutions around the world are currently developing digital currencies, and this does not include central banks that have announced consideration of issuance or research of digital currencies.

In the competition of CBDC, the People's Bank of China seems to be in a leading position. The People's Bank of China (PBoC) recently mentioned that it has completed the top-level design of the central bank's digital currency. Since 2014, the People's Bank of China has been researching and developing fiat digital currencies.

Recently, the People's Bank of China also mentioned that the highly anticipated digital RMB will be distributed to commercial banks first, and then users and enterprises can register digital wallets at these commercial banks.

Are you looking forward to central bank digital currencies?

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