The introduction of digital central bank money (CBDC) seems only a matter of time. Yves Mersch from the European Central Bank continues to be interested in cash.China is already leading the way; the country is in the middle of developing a Central Bank Digital Currency (CBDC). Digital central bank money promises the Middle Kingdom a smooth flow of money, better monitoring of money flows and, last but not least, an economic advantage. China’s digital central bank money has already entered the test phase last month. Since then, government officials have received part of their salary in the form of the CBDC.
No risk of cash?
However, the government in China is not alone in development, on the contrary. In a survey of 66 banks, the Bank for International Settlements (BIS) found that 80 percent of the central banks surveyed are working on such projects. In a speech on May 11 at the Consensus Conference, Yves Mersch, member of the ECB’s Executive Board, also emphasized that the European Central Bank is also working on a CBDC.