CBDCs: Scepticism and Challenges

The CBDC Conference took place in Istanbul 12-14 September, with over 60 speakers, 40 central banks and 200 delegates meeting to consider the state of play for CBDCs.

Three papers asked the audience to reflect on whether and how a future CBDC might proceed.

Anchor of stability or gigantic flop?

Professor Peter Bofinger, from the University of Wurzburg, asked whether CBDCs are a payment object or a payment system using the analogy of a car or a highway.

He started off by suggesting digital cash as an offline payment tool is as attractive as an alcohol free wine. While the European Central Bank’s (ECB) CBDC survey had reported that people wanted CBDCs to work offline, respondents had gone on to say they didn’t expect to use it.