Central Banks
Central Banks Need Digital Currencies to Stay Relevant, Nagel Says
- Villeroy says CBDCs needed for both wholesale and retail
- Central bank chiefs of Germany, France, Italy speak at BIS
This article is for subscribers only.
The technological innovation of the past years puts a question mark over central banks’ future and officials must “speed up” adaptation including digital currencies, according to Bundesbank President Joachim Nagel.
“If you would have asked me 20 years ago if the central bank business model” were “destroyable or not, I would have said no,” he said on Monday in Basel. “Now I am not so sure anymore — and that is the reason why we are sitting here. We need to work on our business model. And DLT is just a means, an instrument that could help us here to get to that point.”