Spare a thought for the trilemma of central bank digital currencies4 min read 13 Nov 2022, 10:08 PM IST
Central banks may find they can have only two of these: a digital currency, transaction confidentiality and financial stability
Central banks around the world continue to contemplate issuing their own digital currencies (CBDCs). Some have already taken steps in this direction. The People’s Bank of China launched a trial of its e-CNY in Shenzhen in 2020 and has since extended its use to other cities. The Sveriges Riksbank is testing its e-krona for commercial and retail payments. Even the relatively staid US Federal Reserve Board has issued a paper weighing CBDC pros and cons.
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