Digital currencies have important role in future financial system, central bank chiefs say

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Central bank digital currencies (CBDCs) have an important role to play in future as both an alternative to cash for the general public and as a way to speed settlement of cross-border payments, according to a panel of central bank chiefs.

Speaking at the Bank of International Settlements’ Innovation Summit, Christine Lagarde, president of the European Central Bank (ECB), said central bank digital currencies can serve as an important anchor for monetary policy as use of physical banknotes declines, noting the use of digital payments has tripled in recent years and accelerated during the coronavirus pandemic.