OP-ED: Saudi Arabian Monetary Authority has striven to encourage electronic payments and settlements in order to reduce over-reliance on cash. The bill establishes a digital dollar, which it defines as ‘a balance expressed as a dollar value consisting of digital ledger entries that are recorded as liabilities in the accounts of any Federal Reserve Bank or … an electronic unit of value, redeemable by an eligible financial institution (as determined by the Board of Governors of the Federal Reserve System).’ in establishing infrastructure for a central bank digital currency.
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Primarily because this hints at the seriousness of the U.S. The newest offer by House Democrats includes a very forward-looking stimulus: The creation of a ‘digital dollar’ and the establishment of ‘digital dollar wallets.’ This would send shock waves through the cryptocurrency and blockchain industry, particularly for those following central bank digital currencies around the world. looks to Congress for agreement on a massive stimulus package to save the economy. central bank’s board of governors, said the Fed is “conducting research and experimentation related to distributed ledger technologies and their potential use case for digital currencies, including the potential for a CBDC.”Īmidst the coronavirus pandemic, the markets continue to drop and the U.S. One week later, on 6th February, 2020 Lael Brainard, who is a part of the U.S. Read more: The Intricate Relationship Between Digital Media and Cryptocurrency Federal Reserve Of United States (FED) The result indicated a dramatic shift towards digitization of the global monetary system. In total, the banks surveyed covered 75 percent of the global population and 90 percent of global economic output. Out of the 66 banks polled, 21 came from developed economies with 45 from emerging economies (EMEs). The report found 80 percent of the 66 banks, engaged in some form of work involving CBDCs, with nearly 40 percent which had shifted towards experiments and developing proofs of concept. On 24th January 2020 amidst Covid-19 crisis, it was reported that an annual study was carried out by the Bank for International Settlements (BIS).ĭuring this study, major 66 central banks were checked if they were working on (Central Bank Digital Currency) CBDCs and, if so, what type and how far along they were. BIS is responsible for monetary regulation along with banking supervision of the global monetary system around the world through ‘Basel Accords’. Bank Of International Settlements (BIS)īank of International Settlements (BIS) is the central bank of the global nation-state system.
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Will this new global electronic monetary system in the making cause financial chaos in the post-corona world? The following article highlights statements from the top ten central banks in the world and the developments regarding the digitization of the monetary system since the outbreak of coronavirus pandemic. While the need for a digital currency has increased amidst coronavirus pandemic, the dramatic fall in the global economic outlook can result in a serious crisis that can lead the world economy to a great depression, if global lock down continued. The Covid-19 crisis has proved to be a blessing in disguise for the central banks who sought digitization of the global monetary system since 1983.