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Central bank governors discuss pandemic's effects and digital currencies issues

6 November 2020

The global economy is showing first signs of revival following unprecedented macroeconomic policy measures; however, uncertainty is still out there.

The pandemic-induced crisis will have far-reaching global implications, such as higher debt burden and financial vulnerability. This was the conclusion that followed the key online meeting of Central Bank Governors’ Club, which comprises representatives of 26 central banks of the Central Asia, Black Sea Region and Balkan Countries. The meeting was chaired by Bank of Russia Governor Elvira Nabiullina.

The COVID-19 pandemic has, among other things, affected further expansion of e-commerce and electronic settlements technologies. This is one of the reasons why financial regulators are more and more interested in central bank digital currencies. This topic was discussed at the second session of the meeting, facilitated by Deputy Governor of the Bank of Russia Alexey Zabotkin. While arranging the emission of a digital currency, a central bank should, first of all, assess the impact it will have on monetary policy and financial stability, then develop a procedure to avoid and mitigate cyber risks.

This issue and many more were discussed by the central bankers and representatives of the International Monetary Fund and the World Economic Forum, who are conducting advanced research of the field. A representative of the Bank for International Settlements also took part in the discussion.

The Club's meeting was attended by governors of the central banks of Azerbaijan, Albania, Armenia, Bulgaria, Bosnia and Herzegovina, Hungary, Greece, Georgia, Israel, the Kyrgyz Republic, China, Macedonia, Moldova, Russia, Romania, Serbia, Slovenia, Turkey, Croatia, Montenegro, and the Czech Republic. The Club also comprises the central bank governors from Ukraine, Belarus, Kazakhstan, Tajikistan, and Poland.

Preview photo: Riccardo Piccinini / Shutterstock / Fotodom