Watch June’s policy updates where Riccardo Tordera, Head of Policy & Government Relations at The Payments Association talks with Brunello Rosa, CEO of Rosa & Roubini, about “The Macroeconomic Case for Digital Currencies”.
They start by discussing why central banks are thinking of introducing CBDCs, and Brunello concludes that central banks are to respond to the initiatives by the private sector, from where most means of payments have been developed in the past.
The conversation is then steered towards what the implications for the banking system could be. Brunello suggests that the banking system seems threatened by the introduction of CBDCs, especially if it means they have to do all the “dirty work” with KYCs and AMLs.
So, what could be the major Macro risks of introducing CBDCs? Obviously, there could be cyber risks and privacy risks, but according to Brunello, the most relevant from a Macro perspective is if all transactions go through a central entity. This provides for a single point of failure, meaning if a cyber-attack were to happen, the repercussions would be catastrophic. Instead, we need to aim for a more decentralised structure.
The conversation is rounded up as Riccardo asks whether the digitalisation of money will enhance our economy and do as much for us as the development of the internet did.
The Payments Association
St Clement’s House
27 Clements Lane
London EC4N 7AE
© Copyright 2024 The Payments Association. All Rights Reserved. The Payments Association is the trading name of Emerging Payments Ventures Limited.
Emerging Ventures Limited t/a The Payments Association; Registered in England and Wales, Company Number 06672728; VAT no. 938829859; Registered office address St. Clement’s House, 27 Clements Lane, London, England, EC4N 7AE.
Log in to access complimentary passes or discounts and access exclusive content as part of your membership. An auto-login link will be sent directly to your email.
We use an auto-login link to ensure optimum security for your members hub. Simply enter your professional work e-mail address into the input area and you’ll receive a link to directly access your account.
Instead of using passwords, we e-mail you a link to log in to the site. This allows us to automatically verify you and apply member benefits based on your e-mail domain name.
Please click the button below which relates to the issue you’re having.
Sometimes our e-mails end up in spam. Make sure to check your spam folder for e-mails from The Payments Association
Most modern e-mail clients now separate e-mails into different tabs. For example, Outlook has an “Other” tab, and Gmail has tabs for different types of e-mails, such as promotional.
For security reasons the link will expire after 60 minutes. Try submitting the login form again and wait a few seconds for the e-mail to arrive.
The link will only work one time – once it’s been clicked, the link won’t log you in again. Instead, you’ll need to go back to the login screen and generate a new link.
Make sure you’re clicking the link on the most recent e-mail that’s been sent to you. We recommend deleting the e-mail once you’ve clicked the link.
Some security systems will automatically click on links in e-mails to check for phishing, malware, viruses and other malicious threats. If these have been clicked, it won’t work when you try to click on the link.
For security reasons, e-mail address changes can only be complete by your Member Engagement Manager. Please contact the team directly for further help.
