Major Central Banks Group Issues Critical Report
A group of major central banks published on September 18 a report titled "Wholesale Central Bank Money in the Context of Technological Innovation," summarizing discussions conducted from 2024 to 2025 through a dedicated workstream. The Bank of Japan participated as a key member of this international collaboration.
Research Scope: The report examines how technological innovations are transforming wholesale central bank money systems, analyzing implications for monetary policy implementation, financial market infrastructure, and central bank digital currencies (CBDCs).
Key Findings on Technological Innovation
Digital Infrastructure Evolution: The report identifies significant developments in digital payment systems, distributed ledger technology, and programmable money concepts that are reshaping central banking operations.
Cross-Border Payment Systems: Major focus on improving international payment efficiency through technological solutions, including potential CBDC interoperability frameworks and enhanced correspondent banking networks.
Risk Assessment Framework: The group developed comprehensive risk assessment methodologies for evaluating new technologies in wholesale banking, covering operational resilience, cybersecurity, and systemic risk considerations.
Policy Implications and Recommendations
Central Bank Coordination: The report emphasizes the importance of international coordination in developing technological standards and regulatory frameworks for wholesale central bank money.
Implementation Timeline: Recommendations include phased approaches to technology adoption, with careful consideration of existing infrastructure and gradual transition strategies.
Future Research Agenda: The central banks committed to continued collaboration on emerging technologies, with specific focus areas including quantum-resistant cryptography and advanced settlement mechanisms.
Global Financial System Impact
This collaborative research represents a significant step toward harmonizing central bank approaches to technological innovation, potentially influencing the future architecture of international monetary systems and cross-border financial transactions.