Friday's report was compiled by BIS, the Bank of England, the U.S. Federal Reserve, Bank of Canada, Bank of Japan, the European Central Bank, Sveriges Riksbank and the Swiss National Bank. File Photo by Canadastock/Shutterstock/UPI
Oct. 9 (UPI) -- The Bank of International Settlements and seven central banks around the world published a report Friday that set a framework for a digital currency to work in conjunction with paper money.
The report highlights three key elements of the proposal -- cryptocurrency coexisting with cash in a flexible payment system, supporting wider policy objectives and promoting innovation and efficiency.
"This report is a real step forward for this group of central banks in agreeing on the common principles and identifying the key features we believe would be needed for a workable [central bank digitalcurrency] system," Jon Cunliffe, the deputy governor for the Bank of England, said in a statement.
Along with BIS and Bank of England, the report was compiled by the U.S. Federal Reserve, Bank of Canada, Bank of Japan, the European Central Bank, Sveriges Riksbank and the Swiss National Bank.
The institutions said the core features of the digital currencies are that they will be resilient and secure to maintain operational integrity, convenient and available at a low or no cost to end-users, underpinned by appropriate standards and a clear legal framework and have an appropriate role for the private sector.
"While technology is changing the way we pay, central banks have a duty to safeguard people's trust in our money," European Central Bank President Christine Lagarde said.
"Central banks must complement their domestic efforts with close cooperation to guide the exploration of central bank digital currencies to identify reliable principles and encourage innovation."
The report follows years of growing staying power among cryptocurrencies like Bitcoin and Facebook's Libra.