WEF Debuts a Central Bank Digital Currency Framework and a Digital Currency Global Governance Consortium

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The World Economic Forum (WEF) has debuted a central bank digital currency (CBDC) policymaker toolkit and framework and a global governance consortium dedicated to designing a framework for the transnational governance of digital currencies, including stablecoins.

The WEF toolkit is designed to help policymakers across the globe to understand and evaluate the advantages and risks associated with launching a CBDC within their jurisdictions.

SEE ALSOThe Latest IMF Blog Post Lists 6 Risks of Stablecoins

In a statement, Sheila Warren, Head of Blockchain Distributed Ledger Technology, WEF, said:

“Given the critical roles central banks play in the global economy, any central bank digital currency implementation, including potentially with blockchain technology, will have a profound impact domestically and internationally. […] It is imperative that central banks proceed cautiously, with a rigorous analysis of the opportunities and challenges posed.”

At the same time, WEF has created a Global Consortium for Digital Currency Governance that will focus on the development of interoperable, transparent and inclusive policy approaches to regulating the digital currency space and fostering public-private collaboration in both developed and emerging economies.

The WEF says that it will focus on building trust and encourage innovative thinking on regulatory policies that can support public and private actors in the global digital currency space.

The Central Bank of Kenya Governor, Patrick Njoroge, has tweeted about the crypto conversations that took place and says he has positioned Kenya on the forefront in this ongoing digital currency revolution.

As global and high-level conversations around digital currencies now focus on CBDCs and stablecoins, it will be interesting to see how emerging economies within Africa take on the regulatory challenge and create an environment that enables adoption and innovation in this field.

 

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