1/4
"Ultimately, the goal should be faster, safer and cheaper payment systems, available to all."
Yes, perhaps, but faster and cheaper payments systems, especially if they are cross-border or cross-currency payment...
ft.com/content/7a93fb… via @financialtimes
"Ultimately, the goal should be faster, safer and cheaper payment systems, available to all."
Yes, perhaps, but faster and cheaper payments systems, especially if they are cross-border or cross-currency payment...
ft.com/content/7a93fb… via @financialtimes
2/4
systems, also make the equivalent of "bank runs" far more efficient and with potentially much wider participation. In the past fleeing capital – whether from countries, banks, shadow banks, or other leveraged entities – tended to be limited to...
systems, also make the equivalent of "bank runs" far more efficient and with potentially much wider participation. In the past fleeing capital – whether from countries, banks, shadow banks, or other leveraged entities – tended to be limited to...
3/4
institutions and very wealthy individuals because the cost of exit varied inversely with transaction size. As the cost drops to zero, this means that less sophisticated retail investors can participate much more actively in generating panics.
institutions and very wealthy individuals because the cost of exit varied inversely with transaction size. As the cost drops to zero, this means that less sophisticated retail investors can participate much more actively in generating panics.
4/4
Unless we are willing to live with a lot more financial instability, whatever flexibility and efficiency the monetary authorities provide with one hand (e.g. in the form of CBDC), they must either take away with another hand or they must make up for with more moral hazard.
Unless we are willing to live with a lot more financial instability, whatever flexibility and efficiency the monetary authorities provide with one hand (e.g. in the form of CBDC), they must either take away with another hand or they must make up for with more moral hazard.
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