Future of Central Banking

The future of central banking is more likely closed distributed ledgers than anything else. Central banks have got to hope on the digital train and in fact are doing so.
Chair in economics at the University of California Santa Barbara, Rod Garratt is quoted as saying. “What really distinguishes the idea of this sort of central bank digital currency is the idea that, while it may be generated on the central bank balance sheet, it can transact off the central bank’s balance sheet.”
But inflation is the main goal of central banking. There are currently currencies that exist outside of central banks but we’ll see how long they’ll last.
The rest of what’s going on is more or less predetermined. From a central bank viewpoint, the situation is already in sight. Money will stay with the state and will be circulated by central banks.
There are plenty of alternative forms of currency distribution but from a central bank standpoint all that matters is retaining a monetary monopoly.
That’s the bottom line, as hard as it is for many to fathom.

Leave a Reply

Your email address will not be published. Required fields are marked *