Digital currency has become a reality by now. It really takes the form of bank money created digitally for consumers through credit /Ben Margulies, Central Banking, 1 June 2021/.
CBDC might be one of the next steps for digital currency to become a form of payment system. When banks will use central bank money to settle transactions between each other, CBDC will make foreign exchange and cross-border transactions easier. The same will happen to securities trading. We should use private enterprises to manage digital accounts in order to safeguard financial stability.
Is it possible to use CBDC for flexible and multiple interest rates, exchange rates and targeted central bank programs within a currency zone, namely the Eurozone?
Why don’t we use the “learning-by-doing” strategy?
Governor Matolcsy, MNB, the Central Bank of Hungary