Some central banks, such as the Bank of England, the European Central Bank, the Bank of Japan and the Swiss National Bank, come together to explore crypto assets.

Some of the most important central banks worldwide are forming a commission that attempts to explore crypto assets, specifically their potential use cases and the creation of central bank digital currencies (CBDC) in their respective jurisdictions.

The announcement was made by the Bank of International Settlement (BIS) on its website, adding that the commission is joined by Bank of England (BoE), European Central Bank (ECB), Bank of Japan (BOJ) , Bank of Canada (BoC), Swiss National Bank (SNB) and the Sveriges Riksbank of Sweden.

Central banks join to explore digital assets

According to the BIS report, the commission will focus on the economic, functional and technical nature of a CBDC seeking to improve efficiency in the financial industry. This commission will be chaired by the current head of the BIS innovation laboratory, Benoît Cœuré, and Jon Cunliffe, deputy governor of the Bank of England and chairman of the Committee on Payments and Market Infrastructure (CPMI).

For the Coingape media, however, the prospect of a possible release of sovereign currencies is far from being a reality, as it will be necessary to fill several regulatory loopholes.

For example, China gave the green light to develop its digital currency in 2018, but the country has not yet launched it. If the newly created commission is going to launch any digital currency, it will be necessary to establish a lot of deliberation with institutions in the sector and in the forums the Coingape media said.

Recent Background

The BIS established a hub (center) last June to foster international collaboration in innovative financial technology within the central banking community. Later, he signed an operational agreement with the Swiss National Bank to open the center in the country and investigate the possible creation of a digital currency based on Blockchain.

The president of the BIS, Agustín Cartens has already previously recognized that “central banks were soon to issue their own digital currencies.” Cartens, by the way, will be one of the representatives of the crypto world at the World Economic Forum (WEF) that begins just today January 21.

Similarly, last Friday the director of the IMF, Kristalina Goergieva, said that the leaders of the 189 member countries of the IMF should be updated in Fintech and especially in Digital Currencies. For her, they are “priority in 2020”.

Whether or not the creation of a CBDC is based on this initiative, the fact is that Blockchain-based technology and digital assets based on it are receiving serious recognition. In addition, it comes from established institutions, which further legitimizes their use cases.

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