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Cryptocurrencies Could Allow Central Banks to Stay in Money Game

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Eswar Prasad discusses how central banks may incorporate digital currencies in the futureBloomberg

Issuing digital currencies would allow central banks to stay relevant in a time of disappearing cash, according to Cornell University professor Eswar Prasad.

“It’s going to mean that central banks remain in the game,” Prasad, a former IMF China division chief, told Bloomberg Television’s Alix Steel in an interview on Monday. “If you look at certain economies like Sweden where the use of cash is very fast disappearing, central banks may have very little role to play both in terms of wholesale as well as retail payment systems -- so this would keep central banks in the business of creating money.”