When the Federal Reserve Bank of New York published a blog post with the headline “Bitcoin Is Not a New Type of Money,” the authors may have hoped their thought-provoking piece would inspire genteel, reasoned debate. But probably not.
The Bank for International Settlements, a consortium of banks based in Basel, Switzerland, polled 66 central banks last year. The results? One fifth of the world's population will use central bank digital currencies by 2023. CBDCs are a new type of digital money. They can be used for interbank settlements or as a type of general purpose “digital cash,” meant as a stand in for regular bank notes.
The next steps in the country’s digital currency/electronic payment, or DC/EP, project—which it has been hammering away at for five years—are to “follow the principles of stability, security and control” and to “select pilot verification areas, scenarios and service scopes,” said Mu Changchun, the head of the PBOC’s digital currency research institute.
While China and the European Union rush forward on creating a digital currency, the U.S. doesn’t see the need for one in at least the next five years, said Treasury Secretary Steven Mnuchin.