This leads me to ask: do we think there is insufficient innovation going on in payments? To the contrary, it seems to me that private-sector innovation is occurring quite rapidly—in fact, faster than regulators can process. So, spurring innovation is not a compelling reason to introduce a CBDC.
Could it be, however, that the types of innovations being pursued by the private sector are the “wrong” types of payment innovations? I see some merit in this argument when I consider cryptoassets such as bitcoin that are often used to facilitate illicit activity. But a CBDC is unlikely to deter the use of crypto-assets that are designed to evade governmental oversight.