Many central banks around the world are studying the pros and cons of introducing retail CBDC. A retail CBDC is a direct central bank liability.
Questions therefore come up as to whether issuing a retail CBDC may in some ways impede the central bank’s key functions. Among others, these include the following: Will the commercial bank’s money creation process be disrupted? How will it impact the efficient transmission of monetary policy? What role can central banks play to ensure that the demand for credit in the economy is met at reasonable price terms? Will the remit of the central banks need to broaden in scope and reach?
In this series of online videos by Srichander Ramaswamy, Director of the Financial Stability, Supervision, and Payments Pillar at The SEACEN Centre viewers will get some indicative answers to these questions.
The first video introduces learners to the fiat currency-based monetary system. The second module examines the design choices and implications of introducing retail CBDC into the current monetary system. The third module explores the following question: Does retail CBDC have a use case?
The full playlist is live on The SEACEN Centre’s YouTube channel now!
Watch all at here
