32 days ago • Posted by William Ramstein
Cash might actually stick around for quite some time
According to Marion Laboure, the amount of cash in circulation has been surging and, more recently, the COVID-19 pandemic has caused the demand for cash to skyrocket. She adds, ''The Federal Reserve, the ECB, the Bank of England (BoE), and the Bank of Japan (BoJ) have all lowered interest rates to near or below zero. And this trend may continue for a while. Most central banks in advanced countries have a mandate that is centred on the 2% inflation target. Low interest rates are a major challenge for advanced economies to lead the transition to central bank digital currencies (CBDCs). In our view, low interest rates are a barrier that hinders populations in advanced economies from adopting CBDCs. However, this barrier is less of a concern in most emerging economies, especially China, because they have higher interest rates.''