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The joint report, released ahead of the meeting of the Group of 20 (G20) central bank governors and finance ministers, looks at two types of central bank digital currency: a wholesale currency limited to select financial institutions, and a general purpose currency accessible to the public. The report analyses the implications of both types in three core central banking areas: payments, monetary policy implementation and financial stability.
Benoît Coeuré, Chair of the Committee on Payments and Market Infrastructures (CPMI), said central bank digital currencies showed promise in wholesale payments: "Central bank digital currencies could help make settling trades of securities and foreign exchange more efficient in the future. But more work and experimentation would be needed to explore these benefits."
"General purpose central bank digital currencies could revolutionise the way money is provided and the role of central banks in the financial system, but these are uncharted waters, with potential risks. This report is a starting point for further discussion and research and will help countries make choices given their own circumstances," Mr Coeuré said.
Jacqueline Loh, Chair of the Markets Committee, said that while central bank digital currencies could give central banks a new monetary policy tool that could enhance the transmission of policy rates to the real economy, existing tools can already achieve similar goals.
Mark Carney, Chair of the BIS Global Economy Meeting and Chair of the Financial Stability Board, said the report is an important contribution to the G20 discussion on digital currencies, given central banks' mandate to safeguard financial stability for the public.