Cryptocurrencies are here to stay but are unlikely to be considered a credible alternative to money anytime soon.
The nature of money is under scrutiny as central banks begin pondering issuing digital currencies
Electronic cash might be the future, but it is still unclear what payment innovation it offers for the public, certainly in the euro area. And it is unlikely to fully replace the comfort the consumer feels in having money under the mattress.
China is moving towards a digital currency but there is a long way to go.
How would a digital Euro impact the financial system?
The Libra Association claims it will be analogous to a currency board regime, but they have overlooked the problems of monetary management that come with it
Recent developments have re-opened the debate on the future of money. This Policy Contribution discusses two aspects: the implications of the rise of global private stablecoins, such as Facebook's Libra, and the role that public central bank digital currencies could play.
Buying a car, a house or a cryptocurrency has never been easier: with a simple click, digital banking has made financial operations accessible to everyone. But, while Fintech has become widespread, financial literacy does not seem to keep up the pace. This week Maria Demertzis and Nicholas Barrett are joined by Annamaria Lusardi, Denit Trust Endowed Chair of Economics and Accountancy from George Washington University School of Business to discuss financial literacy.
FinTech and Big Tech firms are both increasingly stepping on banks’ traditional turf. This column introduces the 22nd Geneva Report on the World Economy, which looks at the challenges generated by new technology-enabled entrants to the global banking industry and the public authorities that oversee it. It argues that to respond adequately to the FinTech/Big Tech challenge, authorities will need to raise their game and enter uncharted territories.
Facebook’s new cryptocurrency has the potential to be both widely accessible and attractive to those countries that do not have strong sovereign currencies. So far regulators have treated such currencies as a minor risk to national economics, but the Libra could change everything.
Marek Dabrowski and Lukasz Janikowski analyse why private money has historically failed in competition against sovereign currencies and what it means for modern virtual currencies, such as Bitcoin.
The economic potential and risks of crypto assets: is a regulatory framework needed?