IMF, others debate Future of Central Bank Digital Currencies - THE NATION
By Collins Nweze
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The Future of Central Bank Digital Currencies (CBDCs) has continued to generate debates across global market leaders, multilateral institutions, banks and regulators.
The global mobile-first payments infrastructure company Celo, in partnership with global media company Forbes hosted a virtual forum entitled: The Future of Central Bank Digital Currencies (CBDCs) and Cryptocurrency, where experts from central banks and the world’s leading financial institutions discussed progress, challenges and what the future looks like around this evolving technology.
The Celo ecosystem has been focused on having more meaningful conversations, collaborations, and partnerships with the public and official sector at large.
The forum featured some Celo executives alongside a lineup of speakers from the International Monetary Fund, CFTC, Central Bank of Brazil, Giesecke+Devrient, Federal Bank Reserve of New York, Bank of Canada and BIS Hong Kong who touched on topics such as Shaping the Future of Digital Currencies, The Role of Commercial Banks for CBDCs and Propelling CBDCs from Idea to Reality.
Speaking at the virtual event, Executive Vice President, Secure Payments & FinTech, Federal Reserve Bank of Boston, Jim Cunha, said: “As countries adopt the idea of CBDCs, we should build flexible and sustainable structures that work with different countries according to the problems they are trying to solve. We must also think of “Privacy” when we talk about CBDCs.”
Celo also announced the launch of a new solution called Provo, a value-add sandbox for public and official sector experimentation that allows central banks to explore and experiment with central bank digital currencies and other digital assets. As central banks seek to test, iterate and future-proof our global financial system, Provo will enable financial and regulatory authorities to test CBDC designs and implementation mechanisms in permissionedand/or permissionless, risk-free environments on their platforms.
Aliu Musa, Ecosystem Lead, Celo Nigeria said: “We believe institutions in the financial ecosystem should have access to the tools and resources they need to move from discussion to action and begin to explore the future of a more financially inclusive world powered by Celo. Provo brings together the key elements needed for central and commercial banks, as well as financial and regulatory authorities, to design, issue, and experiment with retail currencies on the Celo blockchain.
“The planned launch of the eNaira website by the Central Bank of Nigeria is a step in the right direction and we hope to see more Central Banks as well as other actors in the Central Banking space start testing various designs and prototypes of CBDC, be it account or token based.“