Leading central banks to issue digital currency in three years

Deutsche Bank analyst Marion Laboure estimates that a group of central banks representing approximately one fifth of the world’s population will issue digital currency (CBDC) in the next three years.

Central banks in Canada, the United Kingdom, Japan, the European Union, Sweden, and Switzerland announced joint work on the CBDC earlier this year. The Bank for International Settlements (BIS) also takes part in the project.

Group members have yet to evaluate the economic, functional and technical design of the central bank’s digital currency and its cross-border compatibility. Their first meeting will be held this month.

Central banks that have decided to work together on CBDC are at various stages of technology research. For example, the Bank of Sweden announced the beginning of testing the electronic crown, while the Bank of Japan, which had earlier rejected plans to issue digital currencies, only in January decided to start exploring this possibility.