Many people in the cryptocurrency community believe that while traditional financial institutions might be wary of Bitcoin (BTC) and other cryptocurrencies, but believe that there is one true enemy to cryptocurrency: central banks. This shouldn’t come as much of a surprise, since central banks quite literally represent “centralization”, and so much of cryptocurrency hinges on “decentralization.”
However, it appears as though despite the fact that some central banks might be threatened by the cryptocurrency sector, they certainly aren’t opposed to learning more about its potential. In fact, a recent report indicates that the majority of central banks are actually researching central bank digital currencies.
It’s important to note that not all central banks are on the same page with regards to cryptocurrency. One of the most important figures in global finance, Mario Draghi of the European Central Bank (ECB) has made various statements regarding the issue. In February of last year, he pointed out that Bitcoin was “risky”, but then soon after acknowledged that banks might hold BTC in the future.
Another official the ECB famously railed against Bitcoin late last year, even going so far as to call the digital asset “evil”. This came from ECB executive board member Benoit Couere, who attempted to connect the digital currency to the financial crisis while strangely still admitting that it was a “clever idea”.
Regardless of opinions, research is certainly being conducted. This information came from a study published today by the Bank of International Settlements, an organization made up of 60 of the world’s central banks. The study involved 63 banks, and concluded that 70% were either engaged, or soon to be engaged, in research regarding central bank digital currencies.
However, this does not mean that these banks necessarily have concrete plans to issue a digital currency by any means. One particular individual that believes that central bank digital currencies might be the future is none other than Christine Lagarde, the managing director of the International Monetary Fund, and widely considered to be one of the most important figures in global finance.