- Central bank digital currencies (CBDCs) are digital versions of money, similar to digital banknotes.
- CBDCs are backed by the state and provide finality when transactions are settled.
- CBDCs can be programmable, allowing government agencies and private sector players to target specific people and uses for the money.
- Programmable money can have conditions attached to its use, such as restricting it from being used for certain purposes.
- The central bank would have absolute control over CBDCs and the technology to enforce it.
- Digital identification would be necessary for the integrity of a CBDC-based payment system.
- CBDC transactions would leave traces of the transaction.
- CBDCs are seen as an idea whose time has come.
- The objective is to ensure CBDCs are grounded in transparency, the rule of law, and sound economic governance.
- Introducing a CBDC could have negative implications for civil liberties, increasing monitoring of spending and potentially excluding some people from the financial system.