Thread by @NoelleInMadrid

This piece by @mikejcasey for @coindesk hints at the changing role of central banks. The shift is deeper than most realise – and, combined with other developments in the central bank world, points to a MIND-BLOWING change in their role. /1
coindesk.com/a-decade-of-qu…

@mikejcasey @coindesk It’s not just that central banks are seriously thinking about digital fiat or CBDCs, although that is kinda huge. It’s that they are contemplating the re-wiring of money creation. And here’s the thing – that’s NOT, technically, in their mandate. /2

@mikejcasey @coindesk The main objective of the ECB and the Fed: PRICE STABILITY. (And employment creation for the Fed.) And, sure, maybe CBDCs will help, but that doesn’t seem to be their strongest selling point. It seems that here we have… /3
federalreserve.gov/faqs/money_128…
cfr.org/backgrounder/r…

@mikejcasey @coindesk … central banks seriously considering “updating” the financial wiring of money, through the adaptation of a relatively new technology, which at the same time could significantly impact information gathering. /4

@mikejcasey @coindesk If anyone has any insight into how this fits into the price stability mandate, I am interested, please let me know. Meanwhile, I’ll continue to fret about what the shifting role of central banks could mean.

@mikejcasey @coindesk Also on @coindesk, @jalak comes at this shift from a different angle, that of threat. She highlights India as an example to watch. The trend is broad, though - central bank roles are changing. coindesk.com/the-central-ba…