A fiscally conservative think tank doubts that central bank digital currencies (CBDCs) would be beneficial and wonders if they might even bring about negative outcomes.
In a new policy brief, the Club for Growth questions several of the key arguments that have been put forth in favor of central banks issuing a government-backed cryptocurrency.
“CBDCs seem to be a solution in search of a problem. There is no obvious market failure that CBDCs correct.
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The idea that CBDCs could help to bank the unbanked without crowding out the services of private commercial banks seems dubious.
The so-called improvements in monetary policy would consist of the ability of the central bank to circumvent the so-called zero lower bound on nominal interest rates, but it is not