Digital.Currencies.And.The.Future.Of.The.Monetary.System.BTC.zip torrent

Digital currencies and the future of the monetary system
Remarks by Agustín Carstens1
General Manager, Bank for International Settlements
Hoover Institution policy seminar
Introduction
It is a great pleasure to be here today. Thank you to John Taylor and John Cochrane for the invitation. It is
an honour to speak to this select group of Hoover Institution affiliates, Stanford faculty and Stanford
students – who are surely the policymakers, entrepreneurs and innovators of tomorrow.
In my remarks today, I will address the digitisation of money.2 Does the economy need digital
currencies? Digital money itself is not new. Commercial bank money has been digital for decades, and we
already use digital means of payment on a daily basis. Central banks already provide wholesale digital
money to banks.
In today’s lecture, though, I would like to discuss new forms of digital currencies or “digital cash”
that have been in the news lately, including central bank digital currencies, or CBDCs. If we need digital
currencies of these new kinds, who should issue them, and how should they be designed? What are the
implications of digital currencies for the monetary system? These are weighty issues that are much on the
minds of central bankers, scholars and the general public. Today I hope to clarify the concepts and sketch
a path for the way forward.
1. Do we need new digital currencies? If so, who should issue them?
Let’s start with whether the economy needs digital currencies, and from whom.
It is stating the obvious that our economy is in the middle of a technological revolution.3 A
combination of new digital technologies and greater online activity allows huge volumes of data to be

1 I would like to thank Raphael Auer, Jon Frost, Leonardo Gambacorta and Hyun Song Shin for support in preparing this speech,
and Morten Bech, Sarah Bell, Stijn Claessens, Emma Claggett and Tara Rice for providing comments. I thank Giulio Cornelli for
research assistance.
2 “Digitisation” refers to the process of changing information from analogue to digital form. In the context of money, this refers
to creating a digital representation of money, or moving it to digital form. “Digitalisation”, meanwhile, refers to the use of digital
technologies to change a business model and provide new revenue and value-producing opportunities, or the process of moving
to a digital business. See Gartner, Gartner Glossary, 2021, accessed 15 January 2021.
3 F Caselli, “Technological revolutions”, American Economic Review, vol 89, no 1, 1999 defines a technological revolution simply as
“the introduction of a new type of machines” that are “more productive than machines of the pre-existing type”. T Kuhn, The
structure of scientific revolutions, University of Chicago Press, 1962 discusses the related notion of scientific revolutions, when, in
the accumulation of new knowledge, anomalies lead to a sudden “paradigm shift” or change in beliefs. K Schwab, “The fourth