A Money View Discussion on Central Bank Digital Currencies

Central banks are increasingly exploring central bank digital currencies (CBDC) and the topic often comes up in other discussions on money and banking. For this session we want to take some time to more directly discuss CBDC and some of the main questions around the topic, such as:

• What is a money view read on the impact to the private banking sector?
• How do CBDCs impact liquidity provision in money markets? How will parity between CBDCs and deposits be maintained?
• What new IOUs may emerge (e.g., promises to pay CBDCs)? What new dealers may be required? What institutions will likely play this role?

For this session there is no specific required reading, but for those interested in an introduction to the topic or learning more, there are recent major reports from the BIS and Bank of England:
https://www.bis.org/publ/arpdf/ar2021e3.htm
https://www.bankofengland.co.uk/paper/2021/new-forms-of-digital-money