Why Would Anyone Use a Central Bank Digital Currency?

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Publication Date June 2022
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Argues that central banks would struggle to rollout central bank digital currencies (CBDCs) that would be widely adopted. They may not provide consumers the same benefits as today’s services; privacy is unlikely to be a game-changer; and the private sector still offers scope for innovation. Without widespread adoption, a CBDC will be an expensive failure, and will do little to advance central banks’ goals. For the EU, regulation is a more sensible way to make European payments cheaper, and more diverse, competitive and innovative. The EU should not be distracted by the prospect of a digital euro – which may sound impressive and exciting, but may give Europeans few benefits they cannot enjoy already.

Source Link https://www.cer.eu/insights/why-would-anyone-use-central-bank-digital-currency
Alternative sources
  • https://www.cer.eu/sites/default/files/insight_ZM_digcurrency_7.6.22.pdf
Related Links
ESO Records
ECB: Oct. 2020: Report on a digital euro https://www.europeansources.info/record/report-on-a-digital-euro/
European Economy: Institutional Papers: Vol. 20, no. 3, Dec. 2021: Quarterly Report on the Euro Area (QREA) https://www.europeansources.info/record/quarterly-report-on-the-euro-area-qrea-vol-20-no-3-2021/

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