Cryptocurrency controversy: Time for central banks to step up?
All our financial and banking experts agree: a fully-fledged central bank digital currency is coming, but when? And what might be holding it back? Questions for ING's Mark Cliffe and Teunis Brosens who are joined by IMF Economist, Priscilla Toffano and Phil Middleton from the central bank thinktank, OMFIF
Are you ready for a central bank digital currency?
Four financial and banking experts with their views on a fully-fledged central bank digital currency
Amid growing controversy about the role of cryptocurrencies to the future stability of global financial markets, maybe it's time for central banks to rise to the challenge. We might well see a fully-fledged central bank digital currency emerge within the next five years, according to ING's Chief Economist, Mark Cliffe and ING's Lead Economist for Digital Finance, Teunis Brosens. In this video, they're joined by two other experts in the field to discuss the possible advantages and also drawbacks to such a financial revolution.
The discussion is timely as Facebook's Libra currency appeared to suffer more setbacks over the past few days. According to a report seen by the BBC, it, and others like it, should not be actioned until the company can prove it's safe and secure. That G7 group report is due to be presented to finance ministers at the IMF annual summit this week. It suggests that 'global stablecoins' could pose a range of serious problems and challenges. A number of companies, such as Mastercard and Visa, have already withdrawn from the Libra scheme.
Rapid advances in distributed ledger technology have spurred debate about the possibilities, advantages and drawbacks of central bank digital currencies. The principal limits and trade-offs seem to stem from CBDC’s economic, monetary and financial contexts, and depend on underlying policy and political preferences concerning privacy, data administration, market power, cybersecurity, and the division of labour between the public and private sectors. All these issues were discussed at a joint event held by ING and the central bank thinktank, OMFIF.
Guest speakers don't necessarily represent the ING House View.
Download
Download article"THINK Outside" is a collection of specially commissioned content from third-party sources, such as economic think-tanks and academic institutions, that ING deems reliable and from non-research departments within ING. ING Bank N.V. ("ING") uses these sources to expand the range of opinions you can find on the THINK website. Some of these sources are not the property of or managed by ING, and therefore ING cannot always guarantee the correctness, completeness, actuality and quality of such sources, nor the availability at any given time of the data and information provided, and ING cannot accept any liability in this respect, insofar as this is permissible pursuant to the applicable laws and regulations.
This publication does not necessarily reflect the ING house view. This publication has been prepared solely for information purposes without regard to any particular user's investment objectives, financial situation, or means. The information in the publication is not an investment recommendation and it is not investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Reasonable care has been taken to ensure that this publication is not untrue or misleading when published, but ING does not represent that it is accurate or complete. ING does not accept any liability for any direct, indirect or consequential loss arising from any use of this publication. Unless otherwise stated, any views, forecasts, or estimates are solely those of the author(s), as of the date of the publication and are subject to change without notice.
The distribution of this publication may be restricted by law or regulation in different jurisdictions and persons into whose possession this publication comes should inform themselves about, and observe, such restrictions.
Copyright and database rights protection exists in this report and it may not be reproduced, distributed or published by any person for any purpose without the prior express consent of ING. All rights are reserved.
ING Bank N.V. is authorised by the Dutch Central Bank and supervised by the European Central Bank (ECB), the Dutch Central Bank (DNB) and the Dutch Authority for the Financial Markets (AFM). ING Bank N.V. is incorporated in the Netherlands (Trade Register no. 33031431 Amsterdam).