Ole Bjerg (Copenhagen Business School) – Future Money: Potentials, Risks and Outright Dangers of Central Bank Digital Currencies

The talk builds on the model presented in my paper Designing New Money (2017), where CBDC is mapped and defined relative to existing forms of money according to the three functions of money: medium of exchange, store of value, unit of account. I shall be using the model to map out potentials, risks and dangers of implementing CBDC in the Euro Area. As a new medium exchange CBDC holds the potential to enable a more efficient and smart payment system but also the dangers of increased surveillance and restrictions on the liberties of money users. As a new store of value CBDC opens the potential for a consolidation of monetary and fiscal policy as well as an improvement of the transmission mechanism of both. At the same time CBDC implies the risk of a digital bank run and an increased pressure on the already imbalanced TARGET2 system. As a new concrete unit of account CBDC brings with it potentials for a simpler and more robust monetary system, a true liberalisation of the banking system, a controlled unwinding of QE and a restructuring of the EURO to unwind the imbalances of the TARGET2. If CBDC is not implemented or implemented improperly, there is a risk of a reverse bank run in which central bank money loose their position at the top of the money hierarchy.

Freitag, 09. April 2021 um 11.00 Uhr

Ort: online via Webex

Bitte kontaktieren Sie das Event-Management der OeNB bis 08. April 2021, um eine persönliche Einladung und die Online-Zugangsdaten zu erhalten.