Central Bank of Colombia research: implementing CBDC won’t tag significant economic risks
According to Colombia’s central bank research , adopting a central bank digital currency (CBDC) is expected to have limited economic impacts, underscoring the importance of incorporating attractive attributes tailored to essential user segments. The paper indicates that the central bank is still debating whether to issue a CBDC while acknowledges the potential benefits of implementing transaction constraints to regulate usage. The working paper titled “Expected Macro economic Effects of Issuing a Retail CBDC” by Banco de la República, Colombia’s central bank, concluded that introducing a retail CBDC would not entail substantial macro economic risks . The report further highlights that the most suitable design for Colombia’s economy entails a tiered architecture, potentially hybrid or intermediated through commercial banks, accompanied by predetermined holding and transaction limits. You might also like: 2050: CBDCs, AI...