Opinion: Under the challenge of digital currency, the central bank needs to expand its terms of reference

According to Project Syndicate, Co-Pierre Georg, an associate professor at the University of Cape Town School of Economics, and Katharina Pistor, a professor of comparative law at Columbia University School of Law, jointly issued a paper saying that digital currency poses a huge challenge. Traditionally, the custodian of the monetary system, the central bank, has only focused on monetary policy and financial stability. Guiding financial innovation goes far beyond their existing mandate. But given the pace of reform, they may have no choice but to expand their terms of reference as soon as possible.