Bank of Lithuania economist Aistė Juškaitė: The central bank is exploring CBDC
The central bank digital currency (CBDC) is currently enjoying a lot of attention in the academic and central banking community. Naturally, central banks are particularly interested in the potential impact of CBDC on monetary policy. There is much hope that the CBDC can strengthen through monetary policy. At the same time, a more cautious approach concerns the potential of digital currency to cause structural bank dispersion and stimulating banking to operate in stressful situations by providing an asset for digital operations.
In the future, CBDCs clearly have the potential to impact the financial system significantly. Central banks around the world have been striving to exploit their potential positively.
Bank of Lithuania economist Aistė Juškaitė. Image via Linkedin
In a recent interview, the chief economist at the Market Infrastructure Department at Bank of Lithuania, Aistė Juškaitė, said central banks are joining the global trend towards digital currencies by actively exploring technology. She stated that digital currencies are likely to impact the financial system in a meaningful way.
Juškaitė highlights some advantages for CBDC, such as providing a more stable form of money and reducing costs for foreign nationals operating in the remittance market.
Economists say technology will allow central banks to choose a digital currency design to minimize unintended side effects.
- BOJ Deputy Governor Masayoshi Amamiya: Japan Central Bank Must Be Ready To Issue A CBDC
- Christine Lagarde: European Central Bank Will Move Forward With Efforts On A CBDC