The World Economic Forum has launched a global consortium for digital currency and stablecoins governance. In an announcement, WEF noted that digital currencies are a tool of financial inclusion whose potential can be realized with good governance.
The consortium’s basic responsibility will be to find solutions for the regulatory system which was termed as fragmented. To achieve this goal, WEF notes that there is a need for efficiency, speed, inter-operability, inclusivity, transparency, and trust.
According to Klaus Schwab, WEF Executive Chairman, the digital currency sector requires collaborations between different sectors to realize an efficient regulatory system.
Most important, he noted that the private sector plays a vital role in the digital currency sector. Schwab pointed out that the forum will leverage on its rich history of collaboration with the private sector to facilitate the consortium in coming up with a robust governance framework.
In setting up the consortium, WEF will bring together top companies, financial institutions, government representatives, technical experts, academics, international organizations, NGOs and members of the Forum’s communities on a global level.
Public Sector Support for Consortium
Commenting on the development, Harman Shanmugaratnam, Chairman Monetary Authority of Singapore said it is essential to engage both the public and private sector to realize the potential by digital currencies. He noted that Singapore was already researching the capacity of cryptocurrencies to power cheaper and quick cross-border payments and financial inclusion.
Mark Carney, Governor of the Bank of England said digital currencies need governance that enhances security, efficiency, and legitimacy of payments while ensuring fair and open competition. Carney affirmed that England will fully back WEF in coming up with the consortium.
The initiative will be supported by the Monetary Authority of Singapore, South African Reserve Bank and Massachusetts Institute of Technology (MIT), Central Bank of Kenya among others.
Toolkit for Central Banks
The development comes a day after the WEF published guidelines to help central banks decide if they can engage in digital currency. The toolkit offers comprehensive information on retail, wholesale, cross-border and hybrid central bank digital currencies for all countries.
The World Economic Forum is an organization committed to improving the state of the world by engaging business, political, academic, and other leaders of society to shape global, regional, and industry agendas.