Digital coins issued by central banks could prove the most significant financial innovation since the invention of paper money. Central bankers claim their new money will drive bitcoin and other cryptos out of the market. But if the early history of paper money is any guide, a digital currency at the outset will be no “stablecoin”, and is more likely to prove a force for inflation and other economic woes.
A community to discuss the evolution of
central bank digital currencies, CBDC, typically designed for direct fund deposit to central banks, bypassing conventional lenders like retail commercial banks.