The Bank of International Settlements gives three foundational principles for central banks considering whether to issue CBDC, that flow from their common mandates for monetary and financial stability. Do no harm CBDC should continue to fulfil public policy objectives and not interfere with or impede a central bank’s ability to carry out its mandate for …
6 core principles for Central Banks when considering a CBDC Read More »
A Central Bank Digital Currency is an innovative, digital form of national money issued by a central bank that individuals and businesses can use to trade and make payments. It is different from a reserve, a bank deposit, and physical cash. History of cash Historically, central banks have provided notes and coins to the public …
It is important to consider the impact of CBDCs on inflation given that 2021 and 2022 have seen rising inflation globally, at least partly due to Covid, a manufacturing and supply chain slowdown, and geopolitical factors. While individual central banks have their specific mandates, all of them have a role to play in targeting price …