The Future of CBDCs

Thanks to Paige McNamee and Finextra for including me in an article on the future of CBDCs, The Future of Regulation: Navigating CBDC unknowns and crypto appeal. Here's an excerpt:

Given the adoption of CBDCs by certain nations and the extensive interest being shown across digital currency across the board, it’s difficult to imagine a future where CBDCs, in one form or another, don’t exist. Noll believes that central banks will need to be in the crypto game in some way so as to deal with the threats to their monetary sovereignty.

“A central bank cannot allow a firm or firms to usurp its control of the money supply and, by extension, monetary policy and influence on the financial markets.” Yet, he notes that a fully-fledged central bank digital currency as defined and discussed in the literature may not work for every country.

“Instead, a central bank may opt for a stablecoin, which it will issue and control. Or, a central bank may work with a private firm to issue a legal tender cryptocurrency of its own design. In sum, there is no one way for a central bank to issue its own digital currency.”