‘Central bank digital currencies can transform financial system’

Central bank digital currencies (CBDCs) have the potential to reshape financial systems, changing the landscape of payments and banking, said the panelists in the session Central Digital Currency at Davos on Monday. 

More countries are experimenting with CBDCs and some are beginning to bring them to market, potentially offering lessons for the rest of the world, citing the example of El Salvador. 

In September last year, El Salvador became the first country in the world to introduce Bitcoin as legal tender.

The speakers featured on the panel were Julia Chatterley, Kristalina Georgieva, Sethaput Suthiwartnarueput, François Villeroy de Galhau and Axel Lehmann. 

Some of the questions that were debated included the macroeconomic and geopolitical implications surrounding the roll-out of CBDCs. And how can the public and private sectors work together to ensure that CBDC development ultimately benefits consumers and minimizes risks to financial stability?