China’s rapid testing during 2020 of experimental central bank digital currency (CBDC) solutions demonstrates their clear commitment to deploying next-generation technologies to facilitate faster, easier payments that compete with, and eventually replace, cash. As noted in our companion post this week, China’s DCEP (digital currency electronic payment) initiatives raise a number of profound monetary policy and regulatory policy issues that go to the core of the global economy, as well as important privacy issues for open, democratic economies that favor checks and balances across government institutions and central bank independence.
Advanced economy central banks are also actively engaged in CBDC research and development efforts. But as guardians of global reserve currencies, their approaches will necessarily be more deliberate and cautious than Beijing’s aggressiveness.
Continue read: https://www.atlanticcouncil.org/blogs/new-atlanticist/advanced-economies-under-pressure-in-the-central-bank-digital-currency-race/
