Germany’s central bank Deutsche Budesbank and the German Cabinet are currently working together on central bank digital currencies (CBDCs).

On the 29th of August, the German Bundestag published official feedback to a request from the Free Democratic Party which back in July, asked the Cabinet to respond about 6 questions related to the functionality of CBDCs.

The Cabinet answered all the questions by the Free Democratic Party with help from various major reports and surveys in the crypto space, including a report from the beginning of the year by the Bank of International Settlements (BIS).

When the question of the Cabinet’s own knowledge and insights about CBDCs came up, the Cabinet pointed out the BIS report and stated that 70% of global central banks are currently engaged in work related to CBDCs. Currently however, there are only two central banks, which have concrete plans to issue digital central bank money.

The German Cabinet shared many different scenarios

The only country in the European Union that is currently considering the issue of CBDCs is Sweden. Currently however, a final decision has not been reached. The Cabinet also highlighted that Uruguay had CBDC-related plans about due to volatility and major disagreements, the chances of future implementation now seem very slim.

It’s also mentioned that the Chinese central bank was in a similar situation when a research program on the possible issue of CBDCs was started way back in 2014. There is still clarity on the issue.

One of the most important issues which the Cabinet highlighted is a 2018 report from Reuters, which clearly showed that there was still not a single transaction completed in Venezuela’s highly praised Petro project.

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