On the 21st of January, 2020, Central Bank of Europe has announced that it has formed a group with five other central banks including the Bank of Canada, the Bank of England, the Bank of Japan, the Sveriges Riksbank and the Swiss National Bank along with the “bank for central banks”, the Bank for International Settlements (BIS) to explore the potential cases for central bank digital currency (CBDC). The group will look into Central Bank Digital Currency use cases; economic, functional and technical design choices, including cross-border interoperability. The central banks of Canada, European Union, Japan, Sweden and Switzerland are already exploring and developing their own digital currency. Also the World Economic Forum (WEF), an international organization committed to improving the state of the world, has created framework for CBDCs and published it on the 22nd of January. The 28 page framework titled, Central Bank Digital Currency Policy-Maker Toolkit developed by a community of over 40 central banks, international organizations, academic researchers and financial institutions. The toolkit is designed to help central banks to decide whether CBDC is right for them and examines the costs and benefits as well as risks and governance strategies for CBDC deployment.
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