CBDCs could support a more stable economy — if banks pull the strings

cointelegraph.com:

Central Bank Digital Currencies (CBDCs) have become well-established as a major talking point in the academic mainstream and geopolitics — not to mention the crypto community and its rowdy public discourse on X. While national leaders and supranational financial institutions such as the World Bank and International Monetary Fund have come to a broad consensus that CBDCs stand to provide great benefits, very little has been said detailing where CBDCs are best designed to provide support, and where their adoption may be, so to speak, out of bounds.

In order for CBDCs to have a net positive effect on the global economy, it is imperative for global leaders to recognize their advantages and limitations. CBDCs can help central bankers to implement more effective capital controls, stimulus plans, and other forms of monetary policy as they issue debt to banks — that is, at the wholesale level.

Within these bounds and only within these bounds, CBDCs can help central banks to smooth market downturns, minimize recessions, and expedite growth — necessary practices in supporting stable national and regional economies.

Stablecoins will soon be one of the largest sources of demand for US treasuries on the planet. https://t.co/qjMyN4QjQ7

Implementing CBDCs at the retail level to serve individuals and corporations directly, on the other hand, is far too complex and nuanced an undertaking for central banks to manage.

In the private sector, identifying a proper product-market fit is always a primary consideration for any startup. In the public sector, conducting a similar process with any nascent technology is equally important. In the case of CBDCs, the objective may be most appropriately described as a “product-industry fit” of sorts.

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