THE URGENCY OF CBDC

Central Bank Digital Currency (CBDC) has recently taken the financial world by storm.

Inevitably, the question arises: What were the drivers behind such rapid and impressive development?

Just a few years ago, Central Bank Digital Currency (CBDC) was still attracting very little interest. Only a handful of central banks were even looking into it. If at all, discussions about CBDC were often held behind closed doors.

Then, however, a number of central banks began implementing pilot projects with the aim of better understanding the challenges associated with CBDC. A multitude of studies have also been published on this topic. 

At the same time, technological innovations facilitated the advent of cryptocurrencies and, in the wake of Facebook’s announcement of plans to introduce Libra, CBDC was thrust into the spotlight almost overnight.