Session 304 of the WSIS Forum discussed challenges facing central banks in issuing digital currency. The panellists gave an overview of digital fiat currency, and raised some of the interoperability, policy, and regulatory and security challenges being investigated by central banks. 

Moderator Mr Vijay Mauree, programme coordinator with the  Policy and Technology Watch Division of the Telecommunications Standardisation Bureau (TSB) of the International Communication Union (ITU) listed some of the questions currently being explored by central banks:

• What are the differences between central bank-issued currency and private currency?

• What is going to be the impact of digital currency in the future?

• How will digital currency integrate or become interoperable with existing payment systems?

Dr Daniel Reiss, from the Committee on Payments and Market Infrastructures at the Bank for International Settlement (CPMI), gave an overview of central bank-issued digital currencies (CBDC)…

As Central Banks grow increasingly interested in understanding and issuing digital fiat currency (DFC), they face critical questions about its implications for macroeconomic stability, its technical implementation, and subsequent security.

As part of the work of the ITU Focus Group investigating DFC, we are eager to share the perspectives of several Central Banks actively implementing, pursuing and exploring DFC applications in their jurisdictions.

Our Focus Group will meet for the second time next month in New York…