Central Bank Digital Currencies (CBDC)

In a joint report seven central banks, namely The Bank of Canada, European Central Bank, Bank of Japan, Sveriges Riksbank, Swiss National Bank, Bank of England and the Board of Governors of the Federal Reserve, together with the Bank for International Settlements (BIS) worked out foundational principles necessary for any publicly available central bank digital currencies (CBDC) to help central banks meet their public policy objectives.

Three key principles for a CBDC are highlighted:
•    Coexistence with cash and other types of money in a flexible and innovative payment system.
•    Any introduction should support wider policy objectives and do no harm to monetary and financial stability.
•    Features should promote innovation and efficiency.

The group of central banks will continue to work together on CBDCs, without prejudging any decision on whether or not to introduce CBDCs in their jurisdictions.

The full report can be found here.