Seven central banks and private financial institutions, including Japan, the United States, and Europe, have decided to begin demonstration experiments using digital currencies. We aim to create a system that will simplify cross-border payments and help prevent money laundering.
This was announced on the 3rd by the Swiss-based BIS (Bank for International Settlements).
Led by BIS, seven central banks, including the Bank of Japan, the Federal Reserve Bank of New York in the United States, the Bank of England in the United Kingdom, as well as Switzerland, South Korea, and Mexico, will participate in demonstration experiments using digital currencies.
In the experiment, we will use digital currency backed by a central bank to investigate whether transactions between regular banks and central banks and international payments between banks can be made smoothly.
Currently, an international payment network called "SWIFT" is mainly used for payments such as trade, but since the money is sent through an intermediary bank, it takes time to complete the payment and fees are incurred. To do.
Through this experiment, we aim to create a system that will reduce fees, simplify cross-border payments, and help prevent money laundering.
Regarding digital currencies, China is said to be taking the lead in issuing a "digital renminbi," and it appears that China is aiming to compete with China.