The Centre for European Reform (CER) asks why central banks are pursuing central bank digital currencies (CBDC) in a recent post. The CER is a pro-European think tank that aims to make the European Union (EU) work better. “The EU should not be distracted by the prospect of a digital euro – which may sound impressive and exciting, but may give Europeans few benefits they cannot enjoy already,” states the post written by CER Senior Research Fellow Zach Meyers.
He acknowledges some of the concerns that central banks aim to address, such as the dominance of private credit card firms. And he recognizes that consumers might look to riskier private digital currencies as alternatives.
However, he makes several points that central bankers also acknowledge. A key one is whether consumers will widely adopt a CBDC. And he doesn’t entirely accept the concept of a CBDC acting as an ‘anchor’ without broad adoption.
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