FRANKFURT – Important central banks joined together to analyze whether they should issue cryptocurrencies, as the use of cash decreases and more people seek electronic means of payment.
The study group is made up of the European Central Bank, the Bank of Japan, the Bank of Canada, the Bank of England, the Riksbank of Sweden and the National Bank of Switzerland.
The group said in a statement Tuesday that it will evaluate the potential case of digital currencies in their own jurisdictions. The Swedish central bank has studied the issue for years and commissioned a pilot project as the use of cash in that country decreases. At the moment, no decision has been made.
Existing cryptocurrencies _like bitcoin_ are not suitable for paying in the everyday world because their value can fluctuate sharply. Facebook supported the Libra project in search of a stable cryptocurrency, or “stablecoin,” that is linked to existing ones. Several important partners such as Visa, MasterCard, eBay and PayPal have left the association created to monitor Libra as it faces resistance from regulatory authorities.