Joint report by The Bank of Canada, European Central Bank, Bank of Japan, Sveriges Riksbank, Swiss National Bank, Bank of England, Board of Governors of the Federal Reserve and Bank for International Settlements.
Central banks have been providing
trusted money to the public for hundreds of years as part of their
public policy objectives. Yet the world is changing. To evolve and
pursue their public policy objectives in a digital world, central banks
are actively researching the pros and cons of offering a digital
currency to the public (a "general purpose" central bank digital
currency (CBDC)).
The Bank of Canada, European Central Bank, Bank of Japan, Sveriges
Riksbank, Swiss National Bank, Bank of England, Board of Governors of
the Federal Reserve and Bank for International Settlements have
collaborated on a report setting out common foundational principles and
core features of a CBDC. These principles emphasise that, in order for
any jurisdiction to consider proceeding with a CBDC, certain criteria
would have to be satisfied. Specifically, authorities would first need
to be confident that issuance would not compromise monetary or financial
stability and that a CBDC could coexist with and complement existing
forms of money, promoting innovation and efficiency.
A CBDC robustly meeting these criteria and delivering the features
set out by this group could be an important instrument for central banks
to deliver their public policy objectives. This group of central banks
will continue to collaborate and explore the practical implications
outlined in the report.
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