QOTD -- #CBDC
Some days, it is a challenge to choose the Quote of the Day because there are so many good options.
Today is not one of those days.
Whenever a major reserve currency central bank launches a major initiative to explore issuing a central bank digital currency, the development must take top billing.
Technically, the move markets the FIRST concrete effort by a major reserve currency central bank to assess specific technicalities of issuing a CBDC.
The ECB is no stranger to digital currencies. It has been on the innovation frontier from the beginning. Before the retail/physical euro was launched, the Maastrich Treaty authorized creation of a digital currency to facilitate corporate and sovereign cross-border payments in a composite currency.
The EUR started out as a digital unit of account in the late 1990s. There may still be people in the ECB ecosystem that remember those days and the technical details. Today's report amplifies that institutional memory with a concrete blueprint for forward action.