Podcast – Will Central Banks Adopt Digital Currencies?
Bitcoin and other “cryptocurrencies” are getting a lot of attention these days. Will central banks like the Federal Reserve adopt their own digital currencies? In this episode of the Econ Café 2020/21 podcast, Michael Mandel interviews Steve Cecchetti and Kermit Schoenholtz, authors of Money, Banking and Financial Markets, about the plusses and minuses of central bank digital currencies. They explain the benefits and downside of central bank digital currencies, discussed which countries are considering adopting one, and why they are a bad idea for most countries. Finally, they talked about whether or not the U.S. Federal Reserve is considering such a drastic move.
Questions/Discussion:
- What is a central bank digital currency?
- What are the upsides and the downsides of a central bank digital currency?
Sources: Podcast link. Cecchetti Money, Banking and Financial Markets blog. Cecchetti Money & Banking course solution information. Mandel Survey of Economics course solution information.