Central Bank Digital Currency, Virtual Interim Meeting of the Quadrilateral Conference 2020

The 2020 meeting of the Quadrilateral Conference—an annual arrangement with the FMLG (associated with the NY Federal Reserve), EFMLG (ECB) and FLB (Bank of Japan) to meet annually to discuss topics of mutual interest—was cancelled owing to Covid-19 restrictions.  An interim conference was convened virtually instead on 21 October 2020.

FMLC CEO, Joanna Perkins, moderated the panel on Central Bank Digital Currencies (“CBDCs”): tokenised sovereign money which is made available to the general public for ordinary commercial purposes.  Her remarks provided an overview of the response from policymakers and the market to the development of CBDCs.  She focused on three key, central questions in the design of new CBDCs: (1) whether they might be used for commercial or wholesale applications or both; (2) whether they will have an impact on overall money supply; and (3) whether and how they will impact the balance between central banks and commercial banks in the supply of money?

Her speaking notes are available for download here