The World Economic Forum has announced the Global Consortium for Digital Currency Governance.
This is the first initiative to bring together leading companies, financial institutions, government representatives, technical experts, academics, international organisations, NGOs and members of the Forum’s communities on a global level.
To tackle the challenge ahead, an international, multistakeholder approach with the public and private sectors working alongside civil society is needed.
The consortium will focus on solutions for a fragmented regulatory system.Efficiency, speed, inter-operability, inclusivity and transparency will be at the heart of this initiative.It will call for innovative regulatory approaches to achieve these goals and build trust.
A set of guiding principles will be co-designed to support public and private actors exploring the opportunities that digital currencies present.
“Digital currency, a cross-cutting topic that requires input across sectors, functions, and geographies, is a key area of interest for the Forum,” says Klaus Schwab, founder and executive chairman of the World Economic Forum.“Building on our long history of public-private cooperation, we hope that hosting this consortium will catalyse the conversations necessary to inform a robust framework of governance for global digital currencies.”
Lesetja Kganyago, governor of the South African Reserve Bank, adds: “Any evaluation of digital currencies should consider both policy and business objectives, as well as the unique circumstances that face different economies around the world, in order to fully evaluate their risks and benefits.
“Bringing together diverse perspectives through this consortium will allow for this holistic review.
in order to achieve this, we need the public and private sector to collaborate.We need the public and private sector to collaborate.”
“Governance is the core pillar of any form of digital currency,” says Mark Carney, governor of the Bank of England.“It is critical that any framework on digital currencies ensures security, efficiency and legitimacy of payments while ensuring fair and open competition.We welcome the World Economic Forum’s platform to help develop a robust governance framework for inclusion through digital currencies.”
Tharman Shanmugaratnam, senior minister and chairman of the Monetary Authority of Singapore, comments: “We are exploring the potential that properly-regulated digital currencies hold for cheaper and faster cross-border payments, financial inclusion, and rooting out illicit finance.
This dialogue between public and private sector players is now essential, so we find the right roles for each in realizing this potential.”
“We are watching closely as digital currencies increasingly become an area of focus around the world,” says Eric Parrado, chief economist of the Inter-American Development Bank.“They may unlock new opportunities for efficiency and inclusion, but this can only happen with the appropriate infrastructure and guardrails.”
“The release of digital currencies will have far-reaching implications, from domestic financial stability to international trade,” according to Rania Al-Mashat, Egypt’s minister of international cooperation.“As such, it is imperative that efforts to regulate digital currencies are well-informed, collaborative, and global in nature.”
“Building on our collaboration around the World Economic Forum’s Central Bank Digital Currency Toolkit, we are eager to continue exploring the pillars of well-informed approaches to digital currency through this consortium,” says Rasheed Al Maraj, governor of the Central Bank of Bahrain.
Elizabeth Rossiello, CEO of AZA Finance, comments: “Having witnessed firsthand technology leapfrog East and West African financial markets forward over the last decade, we are excited that this initiative will bring leaders from around the world to share best practices and will work on truly global policy recommendations.”
“We welcome the dialogue the World Economic Forum is facilitating about digital currencies,” says David Marcus, head of Calibra, Facebook, a Libra board member.“We agree that good regulation is important for the success and safe adoption of digital currency platforms and are looking forward to continue to engage in this constructive conversation.”
“Digital currencies have the potential to improve access to financial markets, but proper oversight and governance are required,” says Rob Heyvaert, founder and managing partner of Motive Partners.
“The World Economic Forum is uniquely placed to bring together the private and public sectors to discuss these issues and tackle the challenges ahead.”
“Digital currencies are a tremendous opportunity to make the financial system more accessible and fair,” says Neha Narula, director of the Digital Currency Initiative at Massachusetts Institute of Technology (MIT).
Creating an inclusive, integrated global digital currency system requires dialogue across stakeholders ranging from finance ministers to open source developers, and the World Economic Forum is in an ideal position to facilitate this important conversation, he adds.
“Trust is needed in this space now more than ever,” says Joseph Thompson, CEO of AID:Tech.“Creating new economic opportunities and a paradigm shift in how technology is used can benefit all societies.What we need now is multistakeholder cooperation that is anchored in principles of social justice.”
“New technologies, like blockchain, have helped catalyze a revolution in the mechanics of money,” says Joseph Lubin, founder of ConsenSys.
“We applaud the efforts by the WEF in actively researching digital currencies, including those that are blockchain-based, as a means to foster innovation but also ensure that central banks can maintain their role as stewards of the economy.The future of money is digital and central banks and the public sector have a crucial part to play in ensuring that this future is sustainable, inclusive and positive for society.”
The initiative builds on work done by the Forum over the past year, convening a global community of central banks to co-design a policy framework for the adoption of digital currencies.Related .