The rush for Central Bank Digital Currencies, or CBDCs, can very quickly be liked to that of an arms race between countries. CBDCs stand as a financial rifle compared to the fiat short bow, and the world knows it. Six major central banks, stretching across the globe, have agreed to meet in April to discuss the development of CBDCs.
SIx Banks To Enter CBDC Discussions
As the Japan Times reported, back on the 6th of February, 2020, a source familiar with the matter claims that a meeting will happen between governors of several central banks. These governors will discuss a joint research operation when it comes to CBDCs. The group will further consider the possible challenges of such a currency, cybersecurity, and cross-currency settlements being the most prominent factors.
These central banks are of the UK, the EU, Japan, Canada, Switzerland, and Sweden. They have all agreed to meet within Washington DC when the International Monetary Fund conference is underway. From there, they will discuss collaboration of CBDC developments between their respective countries, quite possibly making a universal form of state-backed crypto, though that speculation is unlikely.
The Great Crypto Push
This meeting stands as part of a broader trend across the world’s central banks to try and dive into cryptocurrencies before things like the ill-fated Libra coin comes back to overtake the market. Back in January of this year, the Bank of England had made an announcement regarding CBDC research. It had enacted a joint research project with the aforementioned central banking firms, adding the Bank for International Settlements as well.
The Japan Times speculates that a report for this upcoming discussion will be coming out later this year, with possible details about the goals and intentions within.
The Libra stablecoin, having been announced last year, gave most major central banks a proverbial kick in the pants. Being forced to look at, at the time, a very possible threat to the monetization process of the world, the central banks have started to investigate the potential for a central bank-owned cryptocurrency.
The Proverbial Leaderboards
At this time, China is very much in the lead of things when it comes to the crypto arms race. They are already busy with a pilot project within their borders, even if the coronavirus is slowing them down, some. Even so, the rest of the world is playing catchup, with even the US Federal Reserve finally announcing an investigation into their own form of CBDC.