ECB Executive Benoit Coeure Will Head the Central Bank Digital Currency Initiative

13. Nov 2019 Posted by Akolkar B on News

The digital currency space seems to attain more maturity as big global organizations and central banking institutions chip in.

The outgoing executive board member of the European Central Bank - Benoit Coeure - is all set to shoulder a new responsibility. On Sunday, November 10, the board of directors for Bank of International Settlements (BIS) appointed Benoit Coeure as the head of BIS Innovation Hub.

Coeure will thus lead global efforts of central banks in exploring digital currency solutions and other fintech developments. He is appointed on a five-year term by the BIS and will step in this new role from January 15, 2020.

Speaking about his new role, Coeure said: “I am very happy to be joining the BIS. I look forward to bringing my expertise to the global central banking community at this time of rapid technological change. We must make the best use of innovation to support financial stability and promote financial inclusion”.

The Innovation Hub has been tasked with identifying new and emerging trends in fintech and thus guide central banking institutions to move their operations in that direction. Later, the BIS Innovation Hub will also help to boost public infrastructure to boost the institutions’ operations.

The key areas of focus for the Hub are global stablecoins and central bank digital currencies (CBDCs). In the initial phase, the BIS Innovation Hub will operate from three locations - Switzerland, Hong Kong, and Singapore. Additional locations will be added in the second phase.

Speaking on Coeure’s inclusion as the chief of BIS Innovation Hub, Agustín Carstens, General Manager of the BIS said: “I am delighted to have Benoît on board to advance the important mission of the Hub, which is to harness innovation to improve the functioning of the international financial system. Technology-driven innovation is driving change in many fields and can bring great benefits for anyone who makes and receives payments. The Hub reflects central banks' commitment to share resources and lay the foundations for a bright future”.

Previously, Benoit Coeure had admitted that Facebook’s Libra announcement has served as a wake-up call for policymakers. He argued that regulators should positively respond to challenges posed by global stablecoins in the coming time.