VoxEU, February 3, 2020. HTML.

What are we actually talking about? What do we know? And what should policymakers do? I discuss the following points:

• Finance has been digital forever – what’s new about ‘digital money’?
• Does the nature of money change?
• What is central bank digital currency?
• What is the link between CBDC and the blockchain?
• Would CBDC have macroeconomic effects?
• Would CBDC foster bank disintermediation and bank runs?
• Why consider CBDC at all?
• What opportunities does CBDC offer?
• Where do the risks lie?
• Do the opportunities justify the risks?
• Do central banks have a choice?