People’s Bank of China (PBoC) is reportedly close to launching its very own digital currency. Mu Changchun, the deputy director of the People’s Bank of China payments department has made public that that the digital currency is very close to being out in the market. He explained the rational & need for the digital currency: it will actually serve to replace cash, or M0, but not M2, which is essentially credit.
Officials from European Central Bank have been holding discussion on potential benefits of central bank digital currencies (CBDC). The Chairman of the Bank of Lithuania, Vitas Vasiliauskas said, “The amount of cash in circulation is declining in some countries. This could mean that one day, even if it seems like a distant prospect every single person will have to have an account with a private entity just to make payments. Unfortunately, this may lead to increased levels of financial exclusion.”
The Pakistan’s central bank State Bank of Pakistan (SBP) has announced the institution aims to issue a digital currency. The Bank’s deputy governor, Jameel Ahmad declared that the institution is working on releasing its central bank digital currency (CBDC) concept by 2025. Pakistan is implementing new cryptocurrency regulations in an effort to improve its track record fighting financial crime.
The summary of research on central bank digital currencies (CBDC) was included by the Central Bank of Korea for its annual report. The Central Bank was reportedly conducting the research on CBDC and even considering the launching one even though the idea was later put aside. Apart from that, it also included the set of sets of blockchain-powered solutions.
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.”