Central bank digital currencies: Future of money still a work-in-progress

Policy needs must ultimately drive governments’ decisions on whether to adopt CBDCs and the speed of adoption

Will cash become a thing of the past when CBDCs are adopted? PHOTO: BH
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Earlier this month, the United States Federal Reserve released a long-awaited discussion paper on the pros and cons of creating a central bank digital currency (CBDC) for the US.

The 35-page paper disappointed those expecting a firm policy commitment. But it gave a flavour of the Fed's thinking about its ideal CBDC - one that is privacy-protected, intermediated (the private sector would facilitate the management of CBDC holdings and payments), widely transferrable (between customers of different intermediaries), and identity-verified.

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