3.2  Improved risk-sharing  But in Europe, in particular, the benefits of stronger equity markets extend even further. It might be the single most important step we can take towards bringing Europe closer to an optimal currency area. Economists like Robert Mundell and Peter Kenen have highlighted the importance of effective risk-sharing arrangements for the functioning of a monetary union.
The role of central banks may be considered from the perspective of market initiatives, such as promoting the development of financial markets related to climate change. The Transformation of the Monetary System The third frontier is the transformation of the monetary system, induced by digitalization. Many central banks are working on the issues surrounding central bank digital currency (CBDC).