The global economy is undergoing a profound transformation, characterized by the rapid adoption of central bank digital currencies (CBDCs). This major historical step, in its scope and impact, resembles the shift to paper money in Europe during the 'Financial Revolution' of the 18th century.
This new wave presents immense opportunities, especially for developing nations seeking to enhance financial inclusion. At the same time, it carries significant risks that cannot be ignored if not handled with extreme caution. The primary threats are the undermining of democratic rights and the weakening of the economy's ability to withstand shocks.
The main driver behind the central banks' race for digital currencies is the phenomenal rise of private cryptocurrencies.
