LONDON — Top financial institutions are calling for global cooperation on central bank digital currencies.
The Bank for International Settlements, the global body for central banks, issued a report Friday saying that central banks should work to achieve “interoperability” between their digital currency projects.
This can be achieved through a number of ways, the report said, such as creating common standards and establishing international payment infrastructures.
The report was written in collaboration with the International Monetary Fund and the World Bank.
Several central banks are exploring digital currencies which would be issued by central banks to commercial banks or directly to the public. Their efforts have intensified over the past year amid a decline in cash usage and growing interest in cryptocurrencies like bitcoin.
A photo illustration showing a gold necklace, silver coins and visual representations of bitcoin placed on top of different currencies.
Yuriko Nakao | Getty Images
The People’s Bank of China has been leading the way, with real-world trials already live in several cities.
“I think that each central bank, each country should have its own sovereign currency,” Agustín Carstens, general manager of the Bank for International Settlements, or BIS, told CNBC’s Annette Weisbach on Friday.
“Given that pretty much all central banks are thinking about this, it’s a unique opportunity for the different central bank digital currencies to be interoperable,” Carstens said, adding global central banks should ensure their systems are “congruent with each other” and that “transactions in