Bitcoin Won’t Leave Central Bankers in the Dust
Digital pounds, dollars and euros are years away, but radical changes in wholesale banking and settlement are coming sooner than you think.
There’s more to it than this.
Photographer: Chris Ratcliffe/Bloomberg
Innovation in central banking often starts in small markets. New Zealand was the first country to formally adopt inflation targeting as we now know it in 1990. Today the Bahamas and Cambodia lead China in piloting central bank money in electronic form.
However, few realize it was Finland that pioneered the world’s first central bank digital currency. The experiment has some important lessons for those feverishly trying to figure out how revolutionary CBDCs will be, including the U.K., which joined the club just last month with a new taskforce.