Central bankers should avoid getting too drawn into the bitcoin buzz.
On Friday, seven central banks—including the Federal Reserve—and the Bank for International Settlements published a report outlining common principles for issuing digital currencies to the public. Officials and corporations such as Facebook, inspired by cryptocurrencies, have spent years looking into the potential for technology to revolutionize money creation.
In a survey earlier this year, the BIS concluded that 20% of central banks are likely to launch a digital currency within six years. The risks posed by Covid-19 around the exchange of physical cash could heat up the race. China is furthest along and has launched a pilot program. Sweden’s Riksbank is also conducting its own test.
What remains unclear, though, is why this pitfall-ridden shift is necessary.
Continue read: https://www.wsj.com/articles/central-banks-havent-made-a-convincing-case-for-digital-currencies-11602502935
