The G20, an international forum formed by the governments and central banks of 19 nations and the European Union in September 1999, has revealed plans to integrate digital currencies into its operations. If all goes as planned, the G20 could roll out its CBDC project before the end of the year, according to reports on July 13, 2020.
G20 Nations Interested in CBDCs
Following in the steps of Asian heavyweight, China, whose central bank digital currency, DCEP is already being tested in the country, the G20 members have revealed plans to formulate regulations that would enable the organization to accept digital payments.
Although it is still unclear whether the entire member nations would each create their own CBCD or if there will be a single digital currency supported by member countries, the organization has however made it clear that its digital currency project could go live as early as November 2020, when the next summit will be held in Saudi Arabia.
Specifically, it has been revealed that the 19-member nations of the G20, which includes the United States, the U.K., the European Union, China, Japan, South Africa, and Argentina, among others, will meet later in October to address the key issues associated with using digital currencies including money laundering and terrorist financing.
Spurred by China and Facebook’s Libra
Though the Chinese government has since banned bitcoin trading within its shores, the nation has however embraced the underlying distributed ledger technology (DLT) with open arms, integrating the nascent technology into various sectors of its economy.
As reported by BTCManager, China’s digital renminbi which has been under development since 2014, is now in its testing phase, with leading brands such as the “Uber of China,” Didi Chuxing which has a presence in numerous nations across the globe, already integrating the digital currency into its operations.
Interestingly, the G20 has made it clear that the success of China’s DCEP so far, coupled with the proposed Libra global crypto project by Facebook, has made it to look more closely into digital currencies, in order not to be left behind in innovation.
Elsewhere, on July 3, 2020, reports surfaced that Japan, a G20 member nation is putting preparations in top gear to conduct a proof of concept (PoC) for the digital yen via the Bank of Japan.