Commentary

Why central bank digital currencies will never solve our challenges

Bankers must recognise that they can have a digital currency, confidentiality or stability — but not all together

The People’s Bank of China launched a trial of its e-CNY in Shenzhen in 2020 and has since extended its use to other cities
The People’s Bank of China launched a trial of its e-CNY in Shenzhen in 2020 and has since extended its use to other cities Photo: Getty Images

Barry Eichengreen, professor of economics at the University of California, Berkeley, is a former senior policy adviser at the International Monetary Fund. He is the author of many books, including In Defense of Public Debt

Central banks around the world continue to contemplate issuing their own digital currencies. Some have already taken steps in this direction.

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