Dirk Niepelt: «Libra Paves the Way for Central Bank Digital Currency»

Finews.com | Sep 17, 2019 at 11:31 AM
  • Plans by Facebook and its partners to launch a global digital currency have the fintech sphere buzzing with rumors, and regulators, central banks, and “old finance” worried.
  • In fact, central bank control over a digital currency lets the monetary authority effectively eliminate all macroeconomic downside risks that arise from the currency’s introduction.
  • Only resellers, who stand between users and the “Libra Reserve”, were to redeem Libras against assets in the reserve; that is, only resellers could provide liquidity in times of falling aggregate Libra demand.