Globalisation and capital mobility also makes the international system more vulnerable to changes in investor sentiment. On several occasions we have witnessed contagion effects spreading from one country or one market to others.
Specific to CBDC, the Federal Reserve established a program of work that aims to (1) carry out policy analysis to provide perspectives on issues articulated in the Board’s January 2022 discussion paper; (2) conduct technology research and experimentation to inform potential CBDC designs; and (3) invest in engagement with the public, industry, academia, and the public sector to bring along stakeholders and obtain needed expertise.