FRANKFURT (Reuters) – Digital money issued by central banks would not be an adequate replacement for cash and would heighten the risk of a run on commercial banks, the head of Germany’s Bundesbank said on Wednesday.
The idea of a digital currency giving holders a direct claim on the central bank is being studied by Sweden’s Riksbank and has been touted by some academics as a way to extend the reach of monetary policy when interest rates on deposits are below zero.
Jens - Weidmann - Use - Cash - Means
But Jens Weidmann rejected it and defended the use of cash and means of payments that go through commercial banks.
“(Getting rid of...
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