New money and maybe new powers too: Central Bank Digital Currencies are coming

While it is still too early to see a full launch in a large country, the CBDC (Central Bank Digital Currency) theme is likely to grow in importance in 2021. Over the recent period, central banks have accelerated their studies and tests in this domain. As an instrument for helping economies adapt to digitalisation, CBDCs are also intended to bolster a state’s monetary sovereignty in the face of new challenges.

However, their implementation raises complex issues, including those concerning their coexistence and interaction with bank deposits. While not yet viewed as serving a primary role as a new instrument of monetary policy, CBDC could nevertheless offer new possibilities in this area.

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