Davos Report Says 40+ Central Banks Want Blockchain Currencies

In a Davos report from the World Economic Forum, there are over 40 central banks from across the world that are experimenting with blockchain. It appears that they are interested in leveraging the benefits that technology offers. Here is everything about it in a nutshell.

Issuing CBDCs In The Future

According to the report, it analyzed how different central banks tend to be when it comes to examining the use of blockchain. It also ventured on the outright experimentation with CBDCs or central bank digital currencies.

World Economic Forum’s project leader in blockchain and distributed ledger technology lead named Ashley Lannquist said that this has been the narrative for a good number of central banks. They have been looking at this possibility since day one. It is worth noting that Lannquist is also the main author of the report.

She believed that around 44 different central banks are trying to explore, research, and actively experiment with the said technology. Even more so, these banks, according to her, are looking at the possibility of issuing a digital currency in the near future.

Lannquist added that both pilot and examination have resulted in mixed results. While some proved to be optimistic, there is a summary that most banks are entertaining the idea with great caution. Regardless, they are all involved in the project.

Embracing Blockchain

As of press time, these banks are expected to navigate a deluge of technical and policy issues. As far as the technical part is concerned, the institutions might need to make sure that their entire systems can work as intended. More importantly, they should be able to preserve data accurately.

Lannquist added that they need to answer questions relating to policy aspects, with the monetary policy of a central bank being one of them. These issues, in particular, need to be addressed and studied in order to prevent the possibility of unintended consequences.

But all things considered, Lannquist is positive that central banks would soon embrace blockchain technology fuller. As a matter of fact, she is confident that they could issue central bank digital currencies simply for the fact that some banks out there are interested in doing so.

An epitome would be the National Bank of Cambodia, which is planning to incorporate the tech for its national payment system. This is even expected to be officially launched by the end of this year.