UK think tank calls for global digital currency rules


LONDON (Reuters) – Global rules would permit central financial institution digital currencies to function easily cross-border and velocity up wholesale funds, a think tank backed by the City of London Corporation stated on Friday.

Most central banks, together with the Federal Reserve, the Bank of England and the European Central Bank, are finding out the potential launch of a digital model of their currencies.

Britain has stated any digital model of sterling wouldn’t be obtainable beneath the second half of this decade, whereas the Fed has stated a digital greenback might assist keep the buck’s worldwide standing.

“Key to realising the complete potential of CBDCs is guaranteeing that they will function throughout totally different markets to facilitate wholesale cross-border funds,” stated Kay Swinburne, chair of the International Regulatory Strategy Group, a think tank backed by the City and TheCityUK.

“Global regulatory rules and collaboration shall be wanted to grasp this imaginative and prescient.”

The IRSG stated in a report revealed on Friday there are lots of advantages to together with CBDCs in wholesale digital funds if they’re made “interoperable” for cross-border transactions.

Harmonisation of rules would permit companies who’re licensed in a single jurisdiction to supply providers in one other, and cease nations making an attempt to undercut one another with laxer rules, the report stated.

(Reporting by Huw Jones; Editing by Andrew Heavens)

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