This week's European Economic Experts Panel statements:
The Bank for International Settlements defines a central bank digital currency as follows: ‘In simple terms, a central bank digital currency (CBDC) would be a digital banknote. It could be used by individuals to pay businesses, shops or each other (a 'retail CBDC'), or between financial institutions to settle trades in financial markets (a ‘wholesale CBDC').’
A) For developed countries, a central bank digital currency that is available to the public at large would offer social benefits that exceed the associated costs or risks.
B) Central banks that do not introduce their own digital money risk losing the ability to conduct effective monetary policy.
C) The introduction of a central bank digital currency is unlikely to have major effects on the economy.
Keyword: money creation
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This week's US Economic Experts Panel statements:
The Bank for International Settlements defines a central bank digital currency as follows: ‘In simple terms, a central bank digital currency (CBDC) would be a digital banknote. It could be used by individuals to pay businesses, shops or each other (a 'retail CBDC'), or between financial institutions to settle trades in financial markets (a ‘wholesale CBDC').’
A) For developed countries, a central bank digital currency that is available to the public at large would offer social benefits that exceed the associated costs or risks.
B) Central banks that do not introduce their own digital money risk losing the ability to conduct effective monetary policy.
C) The introduction of a central bank digital currency is unlikely to have major effects on the economy.
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