• Tue. Aug 2nd, 2022

UK think tank calls for global digital currency rules – Markets

ByHazel R. Lang

Jul 8, 2022

LONDON: Global rules would allow central bank digital currencies to work smoothly across borders and speed up wholesale payments, a think tank backed by the City of London Corporation said on Friday.

Most central banks, including the Federal Reserve, Bank of England and European Central Bank, are investigating the potential launch of a digital version of their currencies.

Britain said no digital version of the pound would be available in the second half of this decade, while the Fed said a digital dollar could help maintain the greenback’s international standing.

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“The key to realizing the full potential of CBDCs is ensuring they can operate in different markets to facilitate wholesale cross-border payments,” said Kay Swinburne, chair of the International Regulatory Strategy Group, a think tank supported by the city and TheCityUK.

“Global regulatory principles and collaboration will be required to achieve this vision.”

The IRSG said in a report on Friday that there are many benefits to including CBDCs in wholesale digital payments if they are made “interoperable” for cross-border transactions.

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Harmonizing the rules would allow companies licensed in one jurisdiction to provide services in another and prevent countries from trying to undermine each other with looser rules, the report said.

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