From Bitcoin to stablecoins and CBDCs
From Bitcoin to stablecoins and CBDCs: how digital technology is transforming the global monetary system
Digital technologies have had a dramatic impact on the global monetary system. Physical distances now matter less than a working internet connection, and payments are increasingly fast and secure – which is good for the consumers. But the first ten years of cryptocurrencies’ circulation have shown substantial risks for consumers and the system at large, ranging from technological risks to the threat of payment systems being used for terrorism financing and money laundering, as well as the risk of undermining the effectiveness of some countries’ monetary policies.
Recently, many central banks have started to consider issuance of their own digital currencies (so called CBDCs), which would be widely accessible to the public. Central banks are also discussing the connectivity of CBDCs, which is necessary for them to compete with global stablecoins.
This session will focus on these and other implications that the development of official and private digital payment instruments may have for the global monetary system. We will also discuss policies that would allow us to maximize the benefits of digital payment technologies while minimizing their risks.