Let’s not forget that the reason why fiscal consolidation became central for the policy advice of the ECB is because one can’t have systems built on debt and deficits that the financial crisis has shown to be unsustainable. And there has been progress. To give up now, as some suggest, would be tantamount to waste the great sacrifices made by the citizens of Europe.
In my view, the fundamental question is: what problem could a CBDC solve? CBDC and the Payment System One issue being examined is whether a CBDC or even broader forms of digital money could make the payment system more efficient. Do these new technologies present opportunities to increase the speed of payments and/or lower costs and frictions within the payment system?