Six Central Banks Including ECB, BOE, and BOJ Establish Digital Currency Research Group

[Asia Economy Reporter Jeong Hyunjin] Six central banks, including the European Central Bank (ECB), the Bank of England (BOE), and the Bank of Japan (BOJ), have joined forces to start a joint study on digital currency.

According to a press release issued on the 21st (local time) by the ECB and others, the central banks of Europe, the UK, Japan, Canada, Sweden, and Switzerland formed a group to jointly research digital currencies. They will analyze economic, functional, and technical design methods, including use cases of central bank digital currencies (CBDCs) and cross-border interoperability, and share information on new technologies.

The group does not include the United States Federal Reserve (Fed) or the People's Bank of China. Currently, China is the country showing the greatest interest in digital currency. The Chinese government is preparing to issue the digital yuan. Additionally, since Facebook actively pushed for the issuance of the cryptocurrency Libra last year, central banks appear to be responding accordingly.

Central banks of each country implement monetary policies by managing interest rates and supply of their national currencies to control inflation and the economy. However, if digital currencies become widespread, these functions may not be properly implemented, potentially threatening the role of central banks. The Bank for International Settlements (BIS) recently reported that 70% of central banks in 63 countries worldwide are conducting research on digital currencies.

This content was produced with the assistance of AI translation services.