Does the Singleness of Money Really Need to be Defended by a CBDC?
Originally Published on Tabb Forum August 02, 2024 https://tabbforum.com/opinions/does-the-singleness-of-money-really-need-to-be-defended-by-a-cbdc/ One popular argument central bankers have put forward in favor of CBDCs has been the need to protect “the Singleness of Money.” In this article, Martin Walker, Director of Banking and Finance at the Center for Evidence-Based Management, explores the "Singleness of Money" concept and provides analysis. There have been many reasons put forward for adopting or at least considering adoption of a Central Bank Digital Currency (CBDC). The ever changing set of imperatives for adopting CBDCs is one of the things that feeds the belief that a CBDC is a solution in search of problem, if not, a cheap way for central banks to give the impression of being innovative. Before the Covid era, CBDCs were seen as a way to break the Lower Zero Bound of interest rates to facilitate ever more imaginative forms of monetary stimulus. During the Covid p...