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Cryptocurrencies promise to replace trusted institutions with distributed ledger technology. Yet, looking beyond the hype, it is hard to identify a specific economic problem which they currently solve. Transactions are slow and costly, prone to congestion, and cannot scale with demand. The decentralised consensus behind the technology is also fragile and consumes vast amounts of energy. Still, distributed ledger technology could have promise in other applications. Policy responses need to prevent abuses while allowing further experimentation.

CBDCs may not be compatible with rights of individuals, says Bank of Italy’s Panetta

It is a great pleasure to be here. The topic of this conference speaks to the heart of some of the most challenging questions for central banks today: how is the digital revolution affecting the financial system? What is the impact on consumers, the economy and on central banks themselves? These are complex questions, related to the consequences of the fourth industrial revolution in our society, within which central bank digital currencies (CBDC in short) might one day play an important part.

Hong Kong’s efficient payment infrastructure lessens incentive to go digital, official says

Under proposed framework, a CBDC would have limited impact on monetary policy

Central bank publishes first phase of its CBDC research

ECB executive board member says there is no current need for central bank digital currency

Phase III of the project saw central bank cash and assets instantly settled across DLT network

Framework designed to help policymakers weigh up various forms of digital money

President Maduro announces public will be able to invest in ‘petro’ as well as gold

St Louis Fed paper argues against central banks launching full-blown digital currencies

IMF chief says central banks may be forced to issue their own form of crypto-asset

Governing board member Andrea Maechler warns of “incalculable risks”

Reserve bank to investigate issuing a digital form of central bank money

BIS weighs in on CBDC debate, claiming issuance could help transmission of rate changes