Elevate City Papers summarise the knowledge and expertise shared by leaders, under Chatham House Rule at Elevate City events, to contribute to strategic discussion and debate on topics within the financial services industry, and more broadly.
Latest Elevate City Paper
The Imminence of Central Bank Digital Currencies?
Central Bank Digital Currency (CBDC) would be a new form of central bank money, denominated in the national unit of account, that is a direct liability of the central bank and hence central bank money, like banknotes. CBDC raises the issue of access to central bank money. It could be different from balances in traditional reserve or settlement accounts. A March 2020 discussion paper from the Bank of England on digital currency explored a retail CBDC that “would be an electronic form of central bank money that could be used by households and businesses to make payments and store value. On one hand, this wider access to central bank money could create new opportunities for payments and the way the Bank maintains monetary and financial stability.” On the other hand, the impacts on financial stability and on the transmission of monetary policy must be carefully considered.