Schweizer Monat, April 2022, with Markus Brunnermeier. PDF.
We describe challenges the digital money revolution poses for central banks and predict that more and more monetary authorities will introduce CBDCs.
Tag Archives: Digital finance
“Digital Finance bedroht Geld- und Währungshoheit (Digital Finance Threatens Monetary Sovereignty),” NZZ, 2022
Neue Zürcher Zeitung, February 17, 2022. PDF.
- The federal council’s digital finance strategy focuses on regulation.
- There are limits to this strategy when financial markets operate globally and virtually.
- Preserving monetary sovereignty requires an attractive national currency.
- Carrots, not only sticks.
- An attractive currency is not only stable but also usable in digital form.
“Digital Finance,” FuW, 2020
Finanz und Wirtschaft, January 4, 2020. PDF.
- Finance has been digital for decades. And both technology and preferences are only changing gradually. So, what triggers the abrupt changes in business models that we currently observe?
- The interaction between industry on the one hand and legislators and regulators on the other has changed. New entrants exploit synergies across areas that have so far been regulated by independent authorities, or not at all. While entrants think and act outside the box, regulators and legislators have not yet been able to catch up.
- Digital finance poses new challenges, including for financial stability, national security, and consumer protection (digital literacy).