Last updated on July 15th, 2020 at 11:46 am
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The World Economic Forum (WEF) releases a 28 page policymaker toolkit and framework for new central bank digital currency (CBDC).
WEF also released a global governance consortium that will serve as a designing framework for the transnational governance of digital currencies, including stablecoins.
The new development was unveiled at Davos. This new consortium aims to solve the issue of the transnational governance of digital currencies with a multi-stakeholder approach involving both the public and private sectors.
The 28-page policymaker toolkit for CBDC was written by the WEF in an association with over 40 central banks, academic researchers and financial service providers, among others. The 28-page policymaker toolkit also provides information on cross-border payments, remittance service and hybrid CBDC.
The new 28 page policymaker toolkit will serve as a framework to help central banks around the world trying to issue a digital currency to be sure they really need the new currency or stablecoin.
The consortium will help solve issues affecting regulations and speed innovations around the industry to help growth and encourage new financial technology platforms.
The possible partners will be designing a set of guidelines and other principles that will favour both public and private actors looking to leverage the potential of central bank digital currencies (CBDC).
The governor, Central bank of Kenya, Patrick Njoroge through his twitter handle said:
“Davos @wef is a wrap. Amidst the noise about climate change, we positioned KE in the digital/big tech/crypto conversations. Also had excellent discussions with the Swiss Federal Councillor of Finance, Minister Ueli Maurer, and Swiss-African Business Roundtable. Thank you! @ETH_en.”
David Marcus, head, Calibra, Facebook, Libra Board Member, adds: “We agree that good regulation is important for the success and safe adoption of digital currency platforms and are looking forward to continue to engage in this constructive conversation.”
Meanwhile, retail CBDC can reduce costs, expenses and pressure associated with cash or fiat-money management. But it will also require huge investment in cybersecurity control.
Few countries in Africa is looking to develop a central bank digital currency (CBDC). There is only four countries so far and they include: Ghana e-cedi, Kenya, South Africa and Tunisia.
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