The Bank for International Settlements (BIS) has just reported a select group of central banks from around the world have jointly developed a paper focusing on central bank digital currencies.
In particular, seven central banks have jointly prepared a report with the BIS titled "Central bank digital currencies: foundational principles and core features,” in which they "identify the foundational principles necessary for any publicly available CBDCs to help central banks meet their public policy objectives."
The issue of central bank digital currencies has attracted a lot of attention recently due to the fact that central banks from many countries are exploring the possibility of issuing their own currency in order not to be left behind in the evolution of the banking system. This morning it was reported China will organize a random distribution of its central bank digital currency this month.
Some of the central banks that have participated in the development of the document include the Bank of England, the Federal Reserve of the United States and the Bank of Japan.
The report does not refer to the plans of any of these countries in relation to the launch of their own CBDC. Instead, the report clarifies:
"This report is not about if or when to issue a CBDC. Central banks will make that decision for their jurisdictions (in consultation with governments and stakeholders). None of the central banks contributing to this report have reached a decision on whether or not to issue a CBDC."
The document specifies the fundamental principles on which to base the launch of a future CBDC: a central bank should not compromise monetary or financial stability by issuing a CBDC, a CBDC should coexist with and complement existing forms of money, and a CBDC should foster innovation and efficiency.
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