Why Do More Central Banks Consider Digital Currencies As an Option?

Why Do More Central Banks Consider Digital Currencies As an Option?

This was the crux of the discussions at one of the sessions on CBDCs (central bank digital currencies) at the WAIFC online meeting, which is jointly organised by the Qatar Financial Centre (QFC) and Moscow International Financial Center.

Klaus Loeber, Head of Oversight Division of the European Central Bank, said the interest of a central bank for CBDC could vary, as do their mandates, may be reaction to the declining cash usage or active promotion of a cashless society.

The other possible motivations could be settlement efficiency, financial inclusion considerations, additional monetary policy instrument and tool to improve financial stability, and inhibit criminal activity.

"The demand for stable asset recorded on distributed ledgers sparked discussions around CBDCs," he said, adding the private sector had launched stable-coins as a potential new type of asset