April 9, 2019 — Central banks around the world are now giving serious consideration to the pros and cons of making central bank digital currencies available to the general public, says a new study from the C.D. Howe Institute.
In “Central Banks and the Future of Money,” former Deputy Governor of the Bank of Canada John Murray notes this could take the form of a deposit, similar to those that people hold at commercial banks, or a digital token, exchanged using distributed ledger technology and functioning in the economy much like banknotes do today.
“While they debate the issues at stake, central bankers need to understand that maintaining the status quo is unlikely to be a practicable option, given the shifting financial landscape,” says Murray. “Some countries and central banks have moved beyond talking and have taken active steps to push the initiative further."