Announcing New CBDC Policy Analysis and Webpage

Nicholas AnthonyNorbert Michel and I  have a new CatoPolicy Analysis on central bank digital currencies, or CBDCs. The report begins by dispelling some of the myths about the benefits of CBDCs. The report makes the case that a  CBDC would not be a solution for financial inclusion, faster payments, better monetary policy, or preserving the dollar’s international status. Yet the problem with CBDCs isn’t just a problem of empty promises. Therefore, the report then turns to the risks posed by CBDCs and how they could m ark a radical departure from the current financial system.Ultimately, we make the case that Congress should prohibit both the Federal Reserve and the Department of the Treasury from issuing a  CBDC.To read the policy analysis,click here.If you aren ’t ready to jump into the full paper and would like something easier to step into, worry not! Cato now has a new webpage dedicated to raising awareness for the risks of CBDCs!“The Risks of CBDCs” page provides an introduction to what CBDCs are, how they relate to money as we currently know it, and how they would mark a radical departure from the current monetary and financial system.But don ’t take our word for it.The webpage features quotes from leading CBDC proponents touting the risks of CBDCs as “benefits.” For instance, Augstín Carstens, general manager of the Bank for International Settlements (BIS), said,We don ’t know who’s using a $100 bill today and we don’t know who’s using a...
Source: Cato-at-liberty - Category: American Health Authors: Source Type: blogs