Director of the Peterson Institute for International Economics: Central Bank should participate in digital currency

Adam Posen, director of the Peterson Institute for International Economics (PIIE), said in an interview with Bloomberg that the central bank should participate in digital currency. However, he clearly emphasized two important conditions that the central bank should remember when dealing with this issue: First, if there is unregulated private currency, the central bank must regulate and prevent the use of ordinary or small business regulatory arbitrage. Second, the central bank should be involved because the central bank can provide efficiency and security, making the private currency irrelevant. He also said that agencies have no reason to make the decision to launch CBDC because it is not a "private sector competition."