ECA Talk : Digital Currencies and the Challenges for Central Banks 2022 | The World Bank | 17 March 2022 | Online Event

The foundation of the monetary system is trust in the currency. Central bank digital currencies (CBDCs) build on this trust, offering in digital form the unique advantages of central bank money. They should operate in a two-tier monetary system, in which the private sector and central bank each focus on what they do best. CBDCs should be based on digital identification, with institutional and technological safeguards to ensure privacy. CBDCs can serve the public interest as an open platform that is conducive to a virtuous circle of greater access, lower costs and innovation for better services. Multi-CBDC arrangements can promote more efficient cross-border payments.

Overall, CBDCs can meet the "triple imperative" of competition, data privacy and integrity (encompassing money laundering, financial crimes) that is raised by the centrality of data in the digital economy.

2022 Speakers

Hyun Song Shin
Economic Adviser and Head of Research, Co-Leads, Monetary and Economic Department, Bank for International Settlements (BIS)

Maria Soledad Martinez Peria
Assistant Director, Research Department of the IMF

Erik Feyen
Lead Financial Sector Economist, Competitiveness, and Innovation Global Practice, World Bank