At the first part of this article, we have seen how the US respond for the future digital money. Now, here are some other views on the future of the world’s CDBC from other countries.
Digital money can provide faster settlement of payments and allow people to do financial work directly with the central bank. If the central bank can set its own interest rates on accounts that affect households, it could also benefit from the monetary policy aspect.
However, it is not easy for the central bank to distribute digital currency directly to the public. BIS general manager Erksteen Carsten said in December that central banks were facing a major hurdle in providing dedicated digital currency.
Darrell Duffy, professor of finance at Stanford University, also believes central banks are generally hesitant about issuing digital currency. “How to monitor anti-forgery and link these digital currencies to interest rates remains a question,” he said. “I think these are the responsibilities that central banks do not want.”
Some tests and projects of CDBC in the world’s central banks
Despite this, state-level tests as well as digital projects on digital currencies are in progress in some countries around the world. Some are in the development stages.
Tests on digital currencies are being conducted in the Caribbean region, including the Bahamas and Eastern Caribbean Central Bank, while Sweden launched its “Icorona” pilot program in 2017, according to BIS.
Uruguay’s central bank has also allowed individuals to keep a certain amount of digital money in their digital wallets. And it is currently reviewing the next step.
Speculation continues that China will also unveil a digital version of the yuan soon. It recently reported that it has surpassed all of the development stages.
Hong Kong and Thailand have also released the result of its joint CDBC research. Both countries are reviewing the project positively.