Macro Musings with David Beckworth

Nicholas Anthony on the Current Prospects and Legislative Developments Surrounding CBDC

Sep 4, 2023

Nicholas Anthony from the Cato Institute joins to discuss CBDCs, including arguments for and against, concerns in implementing a retail version, costs of development, legislative developments, concerns surrounding CBDCs, and prospects and challenges.

58:28

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Episode guests

Nicholas Anthony

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Highlights

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Episode notes

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Quick takeaways

CBDCs do not address key factors like privacy and trust, limiting their impact on financial inclusion.

Existing systems and private sector innovations already offer efficient payment options, making CBDCs unnecessary for faster payments.

CBDCs may infringe on individual rights and privacy, and the cost of implementation and maintenance could discourage adoption.

Deep dives

Concerns Over Financial Inclusion

CBDCs are not a solution for financial inclusion as they do not address key factors such as privacy and trust. Many people who would benefit from a CBDC are also those least likely to trust the government or big banks. CBDCs may provide limited access to basic transactions but do not offer full financial services like lines of credit or loans.

Concerns and Pushback Against CBDC

02:13

Private sector solutions and challenges in the current payment system

03:12

Introduction

5min

Arguments for and against Central Bank Digital Currencies (CBDCs)

8min

Concerns and Barriers in Implementing a Retail CBDC

27min

Cost and Political Implications of Implementing a Central Bank Digital Currency

2min

The Legislative Developments and Prospects of Central Bank Digital Currency

8min

Concerns and Pushback Surrounding Central Bank Digital Currency (CBDC)

5min

Prospects and challenges of Central Bank Digital Currencies (CBDCs)

3min

Nicholas Anthony is a policy analyst at the Cato Institute’s Center for Monetary and Financial Alternatives and works on issues relating to financial privacy, cryptocurrencies, and the use of money in society. Nicholas joins Macro Musings to talk about central bank digital currencies (CBDCs) and the recent developments surrounding CBDCs at the Fed and in Congress. Specifically, David and Nicholas discuss the arguments for and against CBDCs, the preemptive, behavioral, and punitive applications of these currencies, who would benefit from the development of CBDCs, and a lot more.

Transcript for this week’s episode.

Nicholas’s Twitter @EconWithNick

Nicholas’s Cato Institute profile

David Beckworth’s Twitter: @DavidBeckworth

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Macro Musings with David Beckworth

Nicholas Anthony on the Current Prospects and Legislative Developments Surrounding CBDC

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

Concerns Over Financial Inclusion

Questioning Faster, Better Payments

Drawing Concerns Over Monetary and Fiscal Policy

Undermining Traditional Banking and Innovation

Congressional Stance and Proposed Legislation

Concerns and Pushback Against CBDC

Private sector solutions and challenges in the current payment system

Remember Everything You Learn from Podcasts