DAVOS, Switzerland, Jan 24 (KUNA) -- The World Economic Forum (WEF) on Friday announced the first global consortium focused on designing a framework for the governance of digital currencies, including stablecoins.
The Global Consortium for Digital Currency Governance will aim to increase access to the financial system through innovative policy solutions that are inclusive and inter-operable, said WEF in a press release.
Opportunities for financial inclusion will be only unlocked if the space is regulated properly and includes public-private cooperation across developed and high-growth markets.$
This is the first initiative to bring together leading companies, financial institutions, government representatives, technical experts, academics, international organizations, 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.
This 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," said 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."
"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," said Lesetja Kganyago, Governor of the South African Reserve Bank. "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."
"While digital currencies offer wide possibilities, these have to be assessed against the fundamental objectives of economic advancement and shared prosperity," said Patrick Ngugi Njoroge, Governor of the Central Bank of Kenya. "Global governance of the diverse initiatives provides greater assurance of this outcome."
"Governance is the core pillar of any form of digital currency," said 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."
This 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. The Forum's Global Technology Governance Summit will take place in San Francisco from 21-22 April. Governance of digital currency will be a core pillar.
The World Economic Forum Annual Meeting 2020 taked place from 20 to 24 January 2020 in Davos-Klosters, Switzerland.
The meeting brings together more than 3,000 global leaders from politics, government, civil society, academia, the arts and culture as well as the media. Convening under the theme, Stakeholders for a Cohesive and Sustainable World, participants will focus on defining new models for building sustainable and inclusive societies in a plurilateral world. (end)