The European Central Bank (ECB) is going to collaborate with a number of other major central banks in the area of crypto coins, in order to ultimately see whether they would benefit from their own digital currency. Bank for International Settlements (BIS) reports Tuesday.
In addition to the ECB, the central banks of the United Kingdom, Japan, Sweden and Switzerland are also involved in the experiment.
The institutions do not want to disclose very many details, but say that they "want to share experiences" while investigating the ways in which a digital currency means something in the countries concerned. The group is led by, among others, ECB board member Benoît Cœuré.
Central banks have recently faced competition from crypto coins from major tech companies.
Cœuré has previously expressed concern about Facebook's crypto currency Libra, which the company announced last year. The ECB executive is concerned about this development. "It cannot happen that they develop financial services without any rules, that is too dangerous."
Last December the European finance ministers already agreed that private digital currencies such as Facebook's libra will not be introduced in the European Union for the time being. According to them, the risks that these coins entail must first be clearly identified and addressed.