The Central Bank of the Bahamas which unveiled its key technology providers on their upcoming development of a digital fiat currency system. The announcement was shared in the official document released, that confirmed it will be collaborating with transaction provider NZIA.io and a Singapore-based software development firm offering blockchain solutions, Zynesis.
The Bank of Korea (BOK) has shared its concern in the report regarding the potential of central-bank digital currency to overcome the commercial bank. The CBDC (Central Bank Digital Currencies) is a kind of a BOK-issued bank account. People trust it more than one in a commercial bank. Demand deposits are one of the biggest sources of loans by banks.
A report released by the IBM disclosed that the central banks’ plan to issue central bank-backed digital currency (CBDC). Reportedly, 38% of the 21 respondents are trailing CBDC for inter-bank transactions. The report mentioned that the CBDC would help eliminate credit risk. It also mentioned that the central banks observed few efficiency gains with blockchain.
The president of the European Central Bank revealed that there is no intention to unveil a digital currency acknowledging that the underlying technology remains fragile and that the adoption of physical cash is still high in the eurozone. The president, Mario Draghi added there is no ‘concrete need’ to issue a digital euro.
Bitt Inc. entered into a MoU with the Central Bank of Curacao and Sint Maarten (CBCS). It is aimed at the development of central bank digital currency to assist financial payments. The acting president of the CBCS quoted that the CBDS “is committed to exploring solutions regarding the efficiency of cross-border transactions and digital payments.”
The Kiel Institute for the World Economy researchers claims that central bank-backed digital currencies would be more stable. The researchers detailed that the cryptocurrencies are not a possible substitute to the traditional central bank currencies. The research report quoted, “Currently, cryptocurrencies such as Bitcoin could not supplant traditional currencies to any significant degree.”
Bank of England has exposed a May 2018 staff working paper emphasizing the adoption of central bank-backed digital currencies (CBDCs) could impose a risk to commercial banks. The paper highlights a ‘radical idea’ that the public could store their money in the form of central bank-backed digital currencies with the central bank.
Bank of England governor, Mark Carney, shared the idea of launching the central bank’s digital currencies. The statement by Carney was said to be a sign of him re-thinking his previous anti-crypto statement. However, Carney then highlighted that no crypto is to be issued by the central bank soon.
The Bank of England has published a working paper covering the probable risk and financial stability associated with the issuance of central bank digital currencies (CBDCs). The paper lists three models of CBDC subject to the sectors that access the digital currency. Many central banks have been exploring on CBDCs.
Norges Bank, the central bank in Norway is planning to unveil its own cryptocurrency supplementing cash. A report published by the bank on central bank-backed digital currency (CBDC) detailing its applications. Governor of the bank stated, “Decline in cash usage promoted us to think whether robust payment system and confidence in the monetary system will be needed.”