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In its latest report, the Blockchain Forum of the EU (EUBF) noted that government agencies have to deal with two aspects of the blockchain to help technology achieve its full potential: that is, institutions must have national digital currencies and systems for digital identity, The Next Web reported.
The organization stated in its report: "The digital identity is the fundamental pillar and a key area for governments to focus on … another important piece … is having digital versions of the currencies on the blockchain, for example, through a central bank based on blockchain digital currencies (CBDC). "
But the report also found that digital identities should arrive before the creation of institutional blockchains. In other words, the group sees the blockchain as a place where users have a "trusted" digital identity. Yet the group wants the identity systems for the blockchain to be "self-sufficient" and managed by the users. But the outlet has said that the series of recommendations of the relationship is not carved in stone and simply "conjectures".
The news comes as the head of the International Monetary Fund (IMF) Christine Lagarde called on central banks in November to seriously consider the creation of digital money to fill the gap left by the fall in money. Financial Times At the time Lagarde believed that central banks could further aid financial inclusion and prevent cases where "too much energy could fall into the hands of a small number of oversized private payment providers." Embracing cryptocurrencies, Lagarde said that central banks can provide money for the digital economy.
At the same time, however, Lagarde noted that central banks should establish how to balance privacy with the need to prevent crime with cryptocurrency. Some central banks are considering cryptography: the Swedish Riksbank, the People's Bank of China and the Bank of Canada are already planning to issue digital tokens to the public.
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