Central bank digital currencies (CBDCs) can have broad implications for the global balance of power in both finance and politics, but the optimal scenarios for adoption have yet to be found.
These are some of the ideas voiced by the panelists discussing China’s digital yuan project on Wednesday. The panel was arranged by Policy 4.0, a Bangalore, India-based think tank, which has recently released a series of reports on the digital yuan.
The discussion featured Policy 4.0 founder Tanvi Ratna, CoinDesk’s Chief Content Officer Michael Casey, Governor John Rolle of the Central Bank of the Bahamas, Tomasso Mancini Griffoli of the International Monetary Fund, Dave Birch of the Official Monetary and Financial Institutions Forum (OMFIF) and the chairman of VeriFi Pindar Wong.
Griffoli outlined three scenarios for adoption for future digital currencies issued by central banks: a limited usage just for remittances, currency substitution for countries with weaker currencies, and a multipolar world