The rise of bitcoin and other cryptocurrencies has prompted central banks to develop their own digital coins.
In 2020, the Bahamas launched their own currency to make payments in the archipelago’s 700 islands more efficient. China is likely to be one of the following countries to follow suit after numerous consumer tests. This week’s topic takes centre stage at the Bank for International Settlements (BIS) event, also described as the central bank for central banks.
Central bank officials will discuss digital money’s future at the BIS Innovation Summit from March 22-25. In addition to crypto development, it also addresses cross-border payments, banking and the new digital ecosystem, decentralized finance, data, analytics, artificial intelligence and cloud technologies.
It also discusses cultural and organizational changes that may be necessary within central banks to meet the challenges of this digital age.
The European Central Bank (ECB) announced more than a year ago, together with several other central banks, to study the possibilities of setting up their own crypto coins. A unique research team wants to know, among other things, in what situations crypto coins offer an advantage.
It also looks at functional and technical design choices and how different digital currencies can work together. The banks involved also want to share knowledge about emerging technologies.