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  • Analytický komentár

New and Better Money – Future Digital Currencies

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    Šuster Martin
4 sep 2020
Improvements in information technologies are opening ways for fully digital forms of money. Digital currencies have a potential to be a better medium of exchange and a safer store of value. We compare potential benefits and costs of public and private digital currencies, looking at several alternative properties. Among private-sector solutions stable-coins fully backed by reserves are the best alternative. However, central bank digital currencies can offer all the benefits of private solutions, without some of their risks and/or costs. Account-based digital currencies are most promising for future payment systems. Providing a truly global digital money can possibly change the established dominance of global currencies.