On 24th January 2020, the World Economic Forum announced the formation of the Global Consortium for Digital Currency Governance as the first framework for governing digital currencies, including stablecoins.
The move aims to improve the regulation of digital currency by creating interoperable, inclusive, and innovative policy solutions to increase the accessibility of financial systems around the world.
The formation of the Global Consortium for Digital Currency Governance is as a result of extensive consultation with various global financial players in both public and private financial markets.
The Global Initiative Will Form A Framework Based on Global and Diverse Input Form Key Players
The initiative, which recognizes the power of digital currencies to create a comprehensive financial system, seeks to pair this potential with good governance. It will include input from representatives within governments, financial and academic institutions, technological innovators, international governance, and Non-government institutions.
“This consortium will focus on solutions for a fragmented regulatory system. Efficiency, speed, interoperability, inclusivity, and transparency will be at the heart of this initiative. It will call for innovative and regulatory approaches to achieve these goals and build trust.”
Consequently, transparency will be key to the creation of a functional and inclusive framework:
‘A set of guiding principles will be co-designed to support public and private actors exploring the opportunities that digital currencies present.’
Global Initiative Is In Line With Goals of the Fourth Industrial Revolution
Following the announcement, many participating leaders in key financial sectors in their countries expressed their trust and in this initiative. The Principal Of the Ignite Impact Fund, Maria Antonia Arroyo Stated:
“It is rare that such an important global organization takes into consideration the context of developing countries in the application of Fourth Industry Revolution technology to achieve SDGs.
Joseph Lubin, Founder of ConsenSys, stated:
“New technologies, like blockchain, have helped catalyze a revolution in the mechanics of money.” We applaud the efforts of WEF in actively researching digital currencies, including those that are blockchain-based as a means to foster innovation but also ensure that central banks can maintain their roles as stewards of the economy, the future of money is digital and central banks. The public sector has a crucial part to play in ensuring that this future is sustainable inclusive And Positive For Society.”
Central Bank Digital Currency (CBDC) Is Intensifying Efforts to Create Proper Governance for Cryptocurrency
The annual World Economic Forum meeting that ended today brought together more than 3000 leaders across the globe. The move shows the deep interest that the Central Bank Digital Currency has taken in the global governance of digital currency.
Recently the CBDC collaborated with six central banks in Europe and Canada which have come together to assess the potential cases for CBDC in their jurisdictions and share their experiences:
“The group will assess the CBDC uses cases: economic functional and technical choices, including cross-border interoperability and the sharing of knowledge on emerging technologies.”