ECB: start CBDC: advantage
The race for the world's first major economy to adopt the Central Bank's digital currency (CBDC) has intensified: the profitable European price
These results are reflected in an article written by the ECB's international policy analysis department, Massimo Minesco Feppapi, in collaboration with two politicians.
"Together with the introduction of the CBDC, the issuer can enjoy a first-hand benefit," explains Feppapi's article.
In addition, it is generally stated that countries without CBDCs are at a disadvantage compared to other countries that have issued such coins. It is very likely that they will lose control of their own monetary policy due to "side effects" and competition.As investors tend to buy CBDCs and take a back seat to bonds and other assets, the impact of these cross-border "spillovers" can be significant.
"The presence of the CBDC increases the international secondary shocks considerably and thus stimulates international connections."
In addition, the authors provided an explanation for their statement:
“The presence of CBDC has a significant impact on monetary policy ... and improves the balance of the international monetary system. In particular, the publication of CBDC by the domestic economy will significantly limit the autonomy of monetary policy in foreign trade. This is forcing the foreign central bank to change its monetary policy to mitigate the stronger international impact of the CBDC. ""Over the past few months, the ECB has activated its efforts to introduce the digital euro while central banks in Japan and South Korea try to stop the fires.