If anything, one could imagine a digital representation of cash that replicates the features of cash in the reasonably distant future, if people demanded it. And I have not even mentioned the insufficient robustness or reliability of some technologies like DLT, or their energy insufficiencies and dependencies. How does technological change affect the monetary transmission mechanism and monetary policy?
Technological change has multifaceted effects on the transmission mechanism. It is important not to jump to conclusions, for example that, because the Phillips curve has become flatter, monetary policy needs to be more aggressive. Let me add that, beyond technological changes, additional liquidity demand factors also stem from regulatory change, fragmentation and the fact that the banking union is incomplete.