Digital currencies have been developing off the back of cryptocurrencies, with the private sector having spawned numerous stablecoins backed by fiat currencies.
Not to be left behind, most of the world’s central banks are investigating the prospect of launching central bank digital currencies (CBDCs). Depending on their usability, they could conceivably displace stablecoins. The Bank for International Settlements (BIS), which sits at the intersection of international CBDC co-operation, suggests that the technological innovations offered by crypto should be harnessed for CBDCs while adding trust.
