Odd Lots Hyun Song Shin on CBDCs and the Future of Central Banking
Jun 24, 2021
Hyun Song Shin, Economic Adviser and Head of Research at the Bank for International Settlements, discusses the evolving landscape of central banking in a post-pandemic world. He dives into the rise of central bank digital currencies (CBDCs) and their role in facilitating economic recovery and financial inclusion. Shin addresses the challenges of integrating digital money with existing payment systems, the limitations of Bitcoin, and the U.S. dollar's dynamics amid global changes. The conversation highlights how CBDCs could enhance traditional frameworks rather than disrupt them.
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Central Banking Challenges
- Central banks face responding to an unusual crisis like the pandemic and varying recoveries.
- The nature of money is changing with the rise of cryptocurrencies and digital commerce.
Data's Role in Digital Economy
- The pandemic accelerated the shift towards digital money and highlighted the importance of data.
- Data's importance raises questions about competition and the role of big tech in finance.
CBDCs: Evolution, Not Revolution
- Existing payment systems need improvement, as seen by stimulus distribution challenges.
- CBDCs are an evolution, not a revolution, building upon existing fast payment systems.