A central bank digital currency (CBDC) could also be used to deregulate banking activities and help the banking sector grow, Miguel Fernández Ordóñez said during a European Parliament hearing on a digital euro.
The Bank of Korea sees a CBDC as a potential answer to problems with existing government-issued grant systems, such as during the COVID-19 pandemic or childcare vouchers
A Bank for International Settlements, or BIS, study found that privacy increases participants’ willingness to use a CBDC by up to 60% when purchasing privacy-sensitive products.
The payments giant has a CBDC Partner Program that includes participants such as Ripple, Fireblocks and Consensys.
The trials are part of a broader initiative to set up infrastructure for digital money transfers, including tokenization of banking assets.
The International Monetary Fund’s planned CBDC handbook offers guidance for policymakers on how to explore digital versions of sovereign currencies.
The National Bank of Kazakhstan plans to implement a digital tenge by the end of 2025.
The public sector should continue to prepare for CBDC deployment, IMF Managing Director Kristalina Georgieva said.
The Federal Reserve continues to pilot a central bank digital currency, but will not issue one without executive branch and Congressional support, the report said.
Central banks will have a limited role to play relative to the private sector in CBDC issuance, BIS general manager Agustín Carstens said.
