Central banks are looking to issue their own digital currencies

Research by the Bank for International Settlements showed that an increasing number of central banks are likely to issue their own digital currencies in the next few years as interest in digital technology increases and central banks in Hong Kong and Thailand announce that they are close to using their own digital currencies to make cross-border payments more efficient.

The Bank for International Settlements said that those from emerging economies tend to have a stronger motivation to issue digital currencies that can act as a substitute or supplement to banknotes, partly because of concerns about the efficiency and safety of payments using traditional cash.

Five central banks, including those in Japan, Britain and the euro zone, have said they are joining each other to look into the issue, and a former BoJ executive said the challenge posed by Libera's currency may have spurred the move.