G20 Should Create Central Bank Blockchain Consortium, Report Says

A new report sheds light on how the G20 economic forum could move to harness the benefits of blockchain technology.

AccessTimeIconMar 20, 2017 at 11:30 a.m. UTC
Updated Sep 11, 2021 at 1:10 p.m. UTC
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Blockchain is key for an inclusive, transparent and accountable digital economy in G20 countries, according to a new report published by the international economic forum.

Notably, the work's author raises the possibility of G20 creating a "central banks blockchain consortium", intended to study possible blockchain-based national fiat currencies.

Penned by Julie Maupin, a senior fellow at the Centre for International Governance Innovation (CIGI), the report was featured as part of the organization's 'Policy Briefs', which feature recommendations on areas of interest to G20 policymakers.

Overall, the eight-page report contends that by harnessing blockchain, G20 countries can provide solutions to two geopolitical challenges:

The first is negativity surrounding cross-border trade and the general distrust in institutions that structure the global economy.

The second is the risk of increasing fragmentation of the global economy caused by anti-globalization sentiments.

Maupin writes:

"Blockchain usage tends toward a more decentralized and democratic order which empowers individuals to participate in the global economy directly through systemically embedded transparency, accountability and inclusiveness mechanisms."

Blockchain use cases

To make this a reality, Maupin argues the G20 should organize a research group to identify which regulatory regimes can be made more efficient through the use of blockchain, and promote a 'sandbox' to test the most promising concepts related to blockchain use cases.

Recommended use cases include financial services for the unbanked, global supply integration for women-owned businesses, alternative clean energy financing and digital identity privacy and management services.

Finally, the report proposes a plan of action including a G20 partnership with other transnational regulatory bodies focused on blockchain related issues of global concern, including the International Standards Organization (ISO), the International Law Association, the Financial Action Task Force (FATF) and the Organisation for Economic Co-operation and Development (OECD).

For more details, see the full report.

G20 flag image via Shutterstock

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