World Economic Forum Launches Global Consortium for Digital Currencies Governance

According to a Cointelegraph report, the World Economic Forum (WEF) has unveiled what is considered to be the first-ever global consortium designed to create a framework for international governance of cryptocurrencies. The launch of the consortium took place in Davos, Switzerland.

Digital currencies are frequently cited as an instrument for financial inclusion. However, this opportunity can only be achieved when paired with good governance.

Enabling international regulatory framework

The rise of digital currencies in various forms such as central bank-issued alternatives, Bitcoin, Facebook’s Libra, and others, has left the international community scrambling to develop a suitable, integrated regulatory system. 

The inspiration behind the establishment of the global consortium is the recognition that well-designed international governance remains a key to having cryptocurrencies realize their promise of fostering financial inclusion by bringing financial services to un- and underbanked populations globally.

This is the first initiative to bring together government representatives, financial institutions, leading companies, academics, technical experts, NGOs, international organizations, and members of the WEF’s communities on a global level.

A multi-stakeholder, international approach with the private and public sectors working together with civil society is required to address the challenge ahead.

The consortium aims to look at ways to tackle a fragmented regulatory system, focusing on inclusive, interoperable, and transparent approaches to policy to regulate the cryptocurrency industry and facilitate work between the private and public worlds in developed and emerging economies.

The consortium will call for innovative regulatory approaches to build trust and achieve these goals. The partners will collaborate to design a set of guiding principles to support private and public actors working to realize the potential of digital currencies.

Making sense of the consortium initiative

Several high-profile leaders endorsed the initiative, including Klaus Schwab, executive chairman and founder of the World Economic Forum, Mark Carney, governor of Bank of England, Tharman Shanmugaratnam, chairman and senior minister of the Monetary Authority of Singapore, and other high-profile figures.

David Marcus, head of Facebook’s Libra, said, “We welcome the dialogue that the World Economic Forum is facilitating about digital currencies.  We agree that a good reputation is vital for the safe and success adoption of digital currency platforms, and we desire to continue engaging in this constructive conversation.”

Neha Narula, director of the Digital Currency Initiative at Massachusetts Institute of Technology (MIT) mentioned, “Digital currencies are a great opportunity to make the financial system fairer and more accessible. Developing an integrated, inclusive international digital currency system needs dialogue across various stakeholders ranging from open source developers to finance ministers. The World Economic Forum is the best place to enable this vital conversation.”

Crypto at Davos 2020

Influential leaders from around the world recently met in Davos, Switzerland for the World Economic Forum’s Annual Meeting 2020. The meeting centered around the theme “Stakeholders for a Sustainable and Cohesive World.” Many issues, therefore, were discussed among them, including the role of digital currencies in global finance.

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