The World Economic Forum (WEF) has announced the creation of a global consortium which will come up with a governance framework for all cryptocurrencies comprising stablecoins.
In a blog post, WEF announced that after extensive consultation among the global community members, an international consortium which will work closely with financial institutions, representatives of governments, developers as well as other global community members to analyze the type of crypto governance which can enhance financial inclusion.
Klaus Schwab, WEF founder who is also the chair, said that virtual currencies are critical area of interest which needs input from different sectors, geographies as well as functions. He said:
“Building on our long history of public-private cooperation, we hope that hosting this consortium will catalyse the conversations necessary to inform a robust framework of governance for global digital currencies.”
According to CoinDesk, the new consortium will aim at providing solutions to the current fragmented regulatory regime in different countries. The consortium will also advocate for innovative regulatory approach in order to enhance technological advancement. The consortium is also expected to come with principles that will encourage the public and private players to work together in exploring the various prospects which comes with virtual currencies.
The international consortium has the backing of various central banks basically from the developing countries and different non-governmental entities. The consortium also has backing from Mark Carney of Bank of England who has previously argued that digital currencies have great potential.
The initiative received support from industry players such as Libra Association’s David Marcus, ConsenSys’ Joe Lubin as well as Neha Narula from MIT’s Digital Currency Initiative. They all praised the efforts taken by the WEF.
The new developments come just a few days following the forum’s blockchain head, Sheila Warren together with Sumedha Deshmukh who came up with ‘Blockchain Bill of Rights’. Last week, various central banks stated that they will set up a working group which will analyze how the crypto technology can be used in the finance sector.
WEF also announced that an international technology governance summit will be held on April 21-22 this year.