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Reuters, LONDON, July 9 – The Bank for International Settlements, the International Monetary Fund, and the World Bank issued an unified statement on central bank digital currencies on Friday. Around 90% of the world’s central banks are considering developing digital versions of their currencies, prompting concerns about how they will collaborate and interact. “CBDCs (central bank digital currencies) allow users to begin with a “blank slate.” The importance of central banks taking into account the cross-border dimension cannot be overstated “In a report prepared for the G20 meeting in Italy, Jon Cunliffe, Chair of the Committee on Payments and Market Infrastructures and Deputy Governor for Financial Stability at the Bank of England, stated. “The ramifications of CBDCs will reach beyond borders, even if they are exclusively meant for domestic use,” Tobias Adrian, Financial Counsellor and Director of the IMF’s Monetary and Capital Markets Department, warned. According to the paper, several degrees of integration and cooperation, ranging from basic compatibility with common standards to the construction of international payment infrastructures, might be used to facilitate international payments with CBDCs. Interoperability will be critical, as will international collaboration on the potential macrofinancial effects of CBDCs, according to the report. Marc Jones contributed reporting, and Catherine Evans edited the piece. The Thomson Reuters Trust Principles are our standards./nRead More

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