Macro Musings with David Beckworth Nicholas Anthony on the Current Prospects and Legislative Developments Surrounding CBDC
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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.
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CBDCs Don't Solve Financial Inclusion
- Financial inclusion is a common argument for CBDCs but it misunderstands banking needs like trust and credit access.
- Providing CBDCs is like handing out prepaid cards, not truly solving banking gaps.
CBDCs Are Late for Faster Payments
- Faster payments are another argument for CBDCs but the US already has infrastructure like FedNow.
- CBDCs would be too little, too late to improve payment speeds significantly.
Regulations, Not Tech, Block International Payments
- International payments challenges are primarily regulatory, not technological.
- CBDCs alone won't fix cross-border transaction problems without regulatory alignment.