Deutsche Bank Marion Laboure analyst He saidthat major central banks that have recently created a think tank to explore the subject of digital currencies (CBDCA), they can take concrete action in this matter within three years. A global pandemic is reportedly only accelerating this process.
First CBDC in 3 years
When Bitcoin appeared on the market for the first time more than a decade ago, central banks have completely ignored the potential of technology blockchaina. Then they even tried to limit the adoption of cryptocurrencies. Now, however, when they finally understood that the block chain guarantees certain benefits, they adopt it for their needs.
Deutsche Bank analyst Marion Laboure told Reuters that central banks that recently formed the CBDC research group are likely to spend their first digital currency in about three years.
In January this year, the media reported that the European Central Bank together with the central banks of Canada, England, Japan, Switzerland and Sweden formed a think tank to deal with aspects of CBDC emissions. Bank for International Settlement (BIS) also joined the initiative. Laboure said a group of central bankers should have met this month to discuss the topic. However, the status of the meeting is currently unclear.
CBDC help with printing?
According to Laboure, CBDC will help central banks improve quantitative easing programs. In other words, as long as Bitcoin has a limited supply, so the central currencies’ digital currencies will be doomed to continuous printing, on the scale that politicians dream of. This will probably cause inflation and will mean the implementation of the famous Modern Monetary Theory, which supposedly allows indebtedness to rule indefinitely. In the short term, it’s a great idea, at least from the authorities’ perspective. Worse, it will cause inflation over time (this can be seen, for example, in Poland, where 500+ and other social programs were inflationary factors).
Although our money is already in a digital form (they are entries in bank accounts and on credit cards), CBDC will differ in that they will be based on block chains. Theoretically, this should increase the transparency of money emissions. Will it be like that?
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