Coronavirus Driving Interest in CBDCs, Say Central Bank Chiefs

Central banks meeting in Russia said the coronavirus pandemic is a driving force behind growing interest in national digital currencies.

Nov 6, 2020 at 3:16 p.m. UTC

Updated Sep 14, 2021 at 10:28 a.m. UTC

A group of central banks says the coronavirus pandemic is a driving force behind growing interest in national digital currencies.

Governors of 26 central banks met in Russia to discuss the pandemic and its financial ramifications, according to a news release from the Bank of Russia on Friday.
The "Central Bank Governors’ Club," including institutions from the Central Asia, the Black Sea region and the Balkans, said the pandemic has brought growth to e-commerce and digital settlement technologies.
As a result, that is one of the reasons financial regulators are increasingly interested in central bank digital currencies (CBDCs).
Before launching a CBDC, however, a central bank should assess the impact it would have on monetary policy and financial stability, and after that develop procedures to "avoid and mitigate cyber risks," the group agreed.
Bank of Russia Governor Elvira Nabiullina, who also chaired the meeting, recently said her central bank's fledgling digital ruble project was "promising" and that a pilot scheme was likely late next year.
The group further said the economic crisis brought by COVID-19 will have "far-reaching global implications," including a higher debt burden and "financial vulnerability."
Representatives from the International Monetary Fund, the World Economic Forum and the Bank for International Settlements were also present at the meeting.

Also read: In the CBDC Race, It’s Better to Be Last

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