Six central banks have formed a group to work with the Bank of International Settlements (BIS) on central bank digital currencies (CBDCs). The members will share findings from assessing potential cases for these currencies.

The group comprises the Bank of England, European Central Bank, Bank of Canada, Bank of Japan, Swiss National Bank, and Sveriges Riksbank, which is the central bank of Sweden.

Each member of the group will investigate CBDC use cases along with economic, functional and technical design choices, including cross-border interoperability. The banks and BIS will share any findings and information on new technologies.

The members will work with the Financial Stability Board and the Committee on Payments and Market Infrastructures (CPMI).

BIS Innovation Hub head Benoît Cœuré and Bank of England deputy governor Jon Cunliffe will co-chair the group.

BIS formed the Innovation Hub in June last year to encourage collaboration between central banks on emerging financial technologies. In October, the Swiss National Bank entered an operational agreement with BIS to bring Innovation Hub Centres to Switzerland.

Initially, the Swiss Centre is set to involve two projects. The first project will explore the combination of digital central bank currency and a distributed ledger technology infrastructure.

The second project will focus on tackling the increasing requirements for central banks to track electronic markets.

In December last year, Riksbank partnered with Accenture to trial its digital currency e-krona on mobile phone, card and watch.

The central banks of UAE and Saudi Arabia also introduced their common digital currency project Aber in last January. The currency is meant for financial settlements between the countries via blockchain and distributed ledgers technologies.