Digital currencies may prove disruptive to a global monetary system long based on country-backed fiat currency. Countries around the world are researching how to develop and utilize their own central bank digital currencies, and the issue took center stage at the 2020 annual World Economic Forum (WEF) in Davos, Switzerland.

According to the WEF, centralized digital currencies could improve monetary policy efficiency, enhance monetary data transmission and reporting, enhance financial inclusions, and help improve the safety and resilience of payment systems.