Fabio Panetta: Central bank digital currencies - defining the problems, designing the solutions

Contribution by Mr Fabio Panetta, Member of the Executive Board of the European Central Bank, to a panel discussion on central bank digital currencies at the US Monetary Policy Forum, New York City, 18 February 2022.

It is a great pleasure to take part in this panel on central bank digital currencies (CBDCs).

Throughout history, money and payments have been constantly evolving. And this also holds true in the digital age. As we increasingly pay digitally and shop online, we rely less on cash. Our wallets are gradually moving from our pockets to smartphones and other electronic devices.

These changes have profound implications for the nature of money itself, raising the question of whether central banks should issue digital currencies for retail use.