Central Bank Digital Currencies (CBDCs) should have a set of rules applicable globally to deal with highly sensitive issues like information sharing and monitoring. This is according to a new proposal put forward by Mu Changchun, the director-general of China’s central bank, the People’s Bank of China (PBOC).
Speaking during a Bank for International Settlements seminar, Changchun said interoperability between different CBDCS should exist for as many jurisdictions and exchanges around the world.
“Information flow and fund flows should be synchronized so as to facilitate regulators to monitor the transactions for compliance.”
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Changchun added that the global rule should feature a fair supply of central bank-issued digital currencies to ensure that the international monetary system evolves in a healthy and stable way.
“A digital currency supplied by one central bank should not impede another central bank’[s ability to carry out its mandate for monetary financial stability.”
China’s PBOC is likely to become the first Central Bank to issue a digital currency. So far, it is the leading country in CBDC development and testing, an initiative that has been active since 2014.
By March 4, 2021, China reported that it had given away millions in digital Yuan (referred to as the Digital Currency Electronic Payment DCEP) as part of its real-world trial phase.
The government also …
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