The Bank of International Settlements has come out firmly in favor of central bank digital currencies (CBDCs) in a new report—calling them a potentially evolutionary change that can “set high standards for safety and risk management and serve as a basis for sound innovation in payments.”
The Bank of England’s statement said the group will explore “CBDC use cases; economic, functional and technical design choices, including cross-border interoperability; and the sharing of knowledge on emerging technologies.”
Federal Reserve Chairman Jerome Powell poured cold water on the idea of a United States-issued central bank digital currency happening anytime soon. Responding to two Congressmen, Powell wrote, “it is not yet clear what additional value a general purpose CBDC could provide in the U.S.”
Less than 12 hours after it was announced, Facebook’s new libra cryptocurrency was already causing the kind of concern in European financial circles that even Bitcoin has not been able to generate.