Status: Draft -- Not PublishedWill be live at 06/21/2022 09:00
FRT Episode 122: Considering a Digital Dollar and Digital Euro
In this episode of FRT, Jessica Renier, Managing Director of Digital Finance at the Institute of International Finance discusses the IIF's responses to the Federal Reserve Bank (Fed) and European Commission (EC) consultations on central bank digital currency (CBDC). The IIF commends the Fed and EC for taking this step forward in considering this momentous issue. Jessica is joined in this episode by Laurence White, Consultant Senior Advisor for Digital Finance at the IIF.
The IIF with its members has developed quite substantive and constructive responses to both questionnaires in view of the significant implications that any design or issuance decision around a CBDC may have for the U.S. and eurozone economies, respectively, and the global financial system. In both cases, for a retail CBDC, the IIF sees many challenging trade-offs and design choices ahead.
The IIF stresses the importance of the Fed, EC and/or European Central Bank (ECB) developing their thinking around a potential digital euro in close collaboration with the private sector. The IIF applauds the ECB’s efforts to collaborate with the private sector through its Digital Euro Market Advisory Group, and encourages both the Fed and the ECB to collaborate closely with the private sector during all future phases of research and potential development should they decide it is in each country's interest to proceed.