A CBDC in Australia this decade must solve challenges around potential disintermediation of the banking sector. But China and the ECB are pushing ahead, writes tommyr345.
Many major central banks want to introduce their own digital currencies this decade as public money in the form of cash is phased out, and governments aim to preserve their currencies in the face of challenges from private, or decentralised, units of account.
Article 1, section 8 of the US Constitution of 1789 states, “the Congress shall have the power to coin money, regulate the value thereof and fix the standard of weights and measures”.Therefore, a government-sanctioned CBDC is nothing more than a logical and historic extension of governments’ desire to control money as the one true form of liquidity to promote the advantages of uniformity, full employment, trust in trade, a stable unit of account and buying power overseas.
For federalists in the European Union, an ECB-issued e-EUR is another chance to push for political union and erode the remaining sovereignty of its member states. any time in the future, the idea isn’t so crazy when you consider, for example, that Sweden’s Riksbank is testing an e-krona Still, it’s fair to ask what is the point of a holding limit on a CBDC in a free market and how would it work or be enforced? These questions seem unanswered, other than that central bank issuers want to discourage citizens from hoarding CBDCs due to a crypto-bro-style scepticism over the solvency of private banks.
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