Parachainglobal： Consequences of CBDCs

 Parachainglobal：

Consequences of CBDCs
Despite many countries looking into the adoption of CBDCs Fabio Panetta believes there are consequences. The member of the ECB’s Executive Board spoke on the international implications of central bank digital currencies (CBDCs), specifically whether and under what circumstances it would be feasible to utilize the digital euro. He claims that there hasn’t been much research done on the global scope of CBDCs.
This perspective is extremely important because design decisions are best taken when the ramifications are thoroughly understood and the issuance and design of CBDCs involve a comprehensive assessment of the trade-offs between risks and opportunities.
The scholarly literature has previously noted several negative effects of making CBDCs available to non-residents. According to him the ultimate CBDC design, such as the inclusion of payment and quantity limitations (caps), has a significant impact on the severity of these consequences.
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