Publications
- Publications
- Unlimited Central Bank Digital Currency: The Case for a Public Good in the Euro Area and its Regulatory (and Deregulatory) Implications for Modern Finance
Unlimited Central Bank Digital Currency: The Case for a Public Good in the Euro Area and its Regulatory (and Deregulatory) Implications for Modern Finance
Central banks in developed financial jurisdictions such as the United States, European Union (EU) and United Kingdom (UK) have increasingly explored issuing a central bank digital currency (CBDC). The articulated rationale in policy papers revolve around providing choice in payment systems, but acknowledging that CBDC may compete with banks for deposits. Our recent article in the North Carolina Journal of International Law agrees with the potential disruptive effects of CBDC for banking systems but argues that the far-reaching effects can perhaps provide an opportunity to rethink bank industry and regulation overhaul altogether.
In particular, we focus on the Euro-area in teasing out these far-reaching effects, which we argue are both timely and important. CBDC for the Euro-area can bring about much-needed shaking up for the banking sector towards healthier transformation, as well as provide new policy options for central banks and policymakers who oversee economic growth and financial stability in the Euro-area.