Germany's Bundesbank are looking very closely at central bank digital currencies (CBDCs)
Germany's central bank are said to be looking into CBDC's at the request of parliamentary group the Free Democratic Party (FDP),
There were some specific questions the FDP had for the Bundesbank. When asked about its knowledge or insights about CBDC, the Cabinet cited the BIS, who have said that 70% of global central banks are engaged in CBDC work, but only two have concrete plans to issue digital central bank money.
It has been said that Sweden is the only country in the European Union that is currently considering issuing CBDCs, while we know that China already have plans in place to do so too.
The Cabinet also cited Venezuela’s Petro (PTR) project, calling on a 2018 Reuters report claiming that there were still no transactions in the oil-backed national cryptocurrency.
Like the Bank of England's Governer Carney, the head of Bundesbank Jens Weidmann also expressed his support for Facebook’s much-discussed crypto project Libra, claiming that global regulators should not suppress the initiative in its infancy.
Author
Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.
