The Future of Money: Central Bank Digital Currencies

The article (link) examines the rationale behind the exploration by the vast majority of the world’s central banks of introducing central bank digital currencies (CBDCs). The phenomenon is discussed in the context of a number of key issues: a) the main drivers of central bank interest, b) the crucial role of public money in supporting and complementing private money channels, c) the role of digital ledger technology in facilitating the delivery of both wholesale and retail central bank digital currencies, and d) the innovation in the forms of money and financial products, alongside cash, that this development represents.

The article discusses the implications for domestic and international monetary system architectures in the immediate, short-term, and long-term. It will be argued that the delivery of central bank digital currencies represents an important development in the future of money, nationally and internationally, and requires the agreement of the public, following a wide-ranging debate at all levels in society. The article is a pre-cursor to a book on the subject, to be published by Agenda Publishing. Additionally, GPI is planning a major international conference on the global impacts of CBDCs to be held in March 2023.

This article appeared in the latest issue of the Atlantic Economic Journal (Vol. 50, Issue 1-2), published by Springer. To read the full article, PLEASE FOLLOW THIS LINK.

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The Global Policy Institute is a research institute on international affairs. It is based in the City of London, and draws on both a rich pool of international thinkers, academics as well as policy and business professionals. The Institute gives non-partisan guidance to policymakers and decision takers in business, government, and NGOs.