Bundesbank: CBDC and stable currency may affect global central bank

The Bundesbank released a document on the 22nd to assess the potential advantages and disadvantages of the central bank's digital currency (CBDC), as well as Facebook's Libra and other stable currencies. The document states that despite regulatory uncertainties and associated risks, Libra may have potential benefits, and Libra's regulation should be as technically neutral as possible so that innovation can benefit the financial industry. In addition, the Bundesbank believes that CBDC and stable currencies are two major developments that may affect the role of global central banks in the near term. The Bundesbank said it did not need CBDC for non-bank entities because they could be used as a substitute for commercial bank funds, which in turn could have a negative impact on credit supply.