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December 2022 Policy Update – with Brunello Rosa, CEO of Rosa & Roubini

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Watch December’s policy updates where Riccardo Tordera, Head of Policy & Government Relations at The Payments Association talks with Brunello Rosa, CEO of Rosa & Roubini.

Brunello and Riccardo spoke back in June about the macroeconomic case for CBDCs, and this time they talk about private money, in particular stablecoins, as Riccardo seeks to get Brunello’s opinion of what stablecoins can do for the British economy.

Brunello begins by reiterating that most of the money in circulation is not public money, but is bank created, and shares his beliefs that this will also be the case when we move to digital currencies, stating that the commercial banks will be the ones distributing digital money to the general public rather than the central banks doing so.

Brunello then takes a look at the similarities between the success of e-money and what could come of stablecoins in the UK. Assuming commercial banks could distribute their own stablecoin, he imagines it will go in one of two directions. Either a “narrow banking” route where the stablecoins will be backed by short-term assets, or a route where banks will be able to introduce stablecoin lending on a much larger scale.

Watch the rest of the interview where they discuss the future of stablecoins in the UK.

For more information or if you wish to contribute to our policy work, please email Riccardo.Tordera@thepaymentsassociation.org.

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