Dirk Niepelt, University of Bern

Central banks already issue digital money, but only to a select group of financial institutions. Central bank digital currency would extend this to households and firms. This column examines the proposal for such currency and assesses the opportunities and risks. It argues that while preparations for the launch of Libra have not proceeded according to plan, it has become clear that for central banks, maintaining the status quo is not an option.

Niepelt, Dirk, “Digital money and central bank digital currency: An executive summary for policymakers”, Vox, CEPR Policy Portal (03 February 2020). Available at: https://voxeu.org/article/digital-money-and-central-bank-digital-currency-executive-summary