TOKYO (Reuters) – The challenge posed by Facebook’s Libra cryptocurrency likely prodded major central banks to set up a new group to study the potential for issuing their own digital currencies, a former Bank of Japan executive said on Wednesday.
The central banks of Britain, the euro zone, Japan, Canada, Sweden and Switzerland on Tuesday announced a plan to share experiences to look at the case for issuing digital currencies, amid a growing debate over the future of money.
Hiromi – Yamaoka – Head – BOJ – Division
Hiromi Yamaoka, former head of the BOJ’s division overseeing payment and settlement systems, said the decision was a sign of how Libra has triggered a global competition among central banks to make their currencies more appealing.
“The latest decision (by the six central banks) is not just about sharing information. It’s also an effort to keep something like Libra in check,” said Yamaoka who, during his stint at the BOJ, was directly in charge of negotiations on new technology.
Libra – Transactions – Costs – Banks – Efforts
“Something like Libra would make transactions costs much cheaper. Major central banks need to appeal that they, too, are making efforts to make settlement more efficient with better use of digital technology,” he told Reuters.
Currently a board member at IT consulting firm Future Corp, Yamaoka oversaw the BOJ’s research into digital currencies and retains close contact with global central bank policymakers.
Banks – World – Pace – Currencies – CBDCs
Central banks across the world have quickened the pace at which they are looking at issuing their own digital currencies, also known as CBDCs. Facebook’s push to launch its Libra cryptocurrency has added fuel to questions over whether nation states…
The beatings will continue until moral improves.