Yesterday, the central bank of the Netherlands, De Nederlandsche Bank (DNB), published a bulletin in which it says it wants to play a leading role in central bank digital currency (CBDC) within the Eurosystem. At the same time, it released a CBDC report which makes the argument that if there is no CBDC, then private payment platforms will eventually replace public cash. So a CBDC maintains the public role of money.
For example, during the COVID-19 crisis, retailers and consumers have leaned towards non-cash, which effectively means greater use of private commercial bank money.
Hence a CBDC could create diversity in payments as well as potentially enabling cross border payments to be more efficient.
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