A group of the world’s seven major central banks has scope to set common rules and platforms for their own digital currencies that could lay the groundwork for more efficient cross-border payments, a senior Bank of Japan official said on Thursday.
The role central bank digital currencies (CBDC) plays differs for advanced nations with a robust banking system and emerging economies that can use CBDCs to make up for shortfalls in their financial infrastructure, said Kazushige Kamiyama, head of the BOJ’s department overseeing development of a CBDC.
“It’s therefore better to come up with common rules among countries with similar economic structures,” he told Reuters in an interview.
“As such, it’s desirable for the BOJ to discuss common rules with the six other major central banks,” he said.
The BOJ is among a group of seven major central banks jointly looking into core features of CBDCs, which includes the U.S. Federal Reserve and the European Central Bank. (Reporting by Leika Kihara and Takahiko Wada Editing by Robert Birsel)