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Central Bank Digital Currencies (CBDCs) are potentially one of the most significant innovations in the evolution of money. In part one of our new series on the future of money, we examine what the mix of CBDCs, stablecoins and crypto currencies will look like, and how they will coexist alongside other traditional digital and physical currencies. Rather than being a zero-sum game, the presence of CBDCs will grow the overall footprint of digital currencies in the economy.
Furthermore, even though CBDCs are currently the focus of macroeconomic debate, we anticipate that the ripple effects will soon trickle to businesses and customers. Specifically, in this report, we explore the potential impact of CBDCs on financial institutions, such as banks.
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