Title:
Digital Currency Policy (link to video)
Speaker:
Darrell Duffie, Graduate School of Business, Stanford University
Abstract:
It’s not yet clear to most central banks whether to focus on (a) upgrading their bank-railed payment systems by bringing in instant payment systems and regulations designed to improve performance, interoperability, and competition, (b) go for a central bank digital currency, or (c) work on both at the same. The U.S. is behind the curve, relative to China and the Eurozone. This talk will focus on progress, trade offs, and policy implications for the development of payment systems.
- For smaller open market economies, invasion by a popular foreign CBDC or private digital currency could be threatening.
- The coming revolution in payments, including CBDCs, will disrupt commercial banks, for better or worse.
- Most central banks are also concerned about impacts on financial inclusion, monetary policy transmission, data privacy, dollarization, and preventing illegal payments.
Bio:
Darrell Duffie is the Dean Witter Distinguished Professor of Finance at Stanford University's Graduate School of Business. He is a member of the Financial Advisory Roundtable of the Federal Reserve Bank of New York, a Fellow and member of the Council of the Econometric Society, a Research Fellow of the National Bureau of Economic Research, a Fellow of the American Academy of Arts and Sciences, and a member of the board of directors of Moodys Corporation since 2008. Duffie was the 2009 President of the American Finance Association. In 2013-2014, Duffie Chaired the Market Participants Group, charged by the Financial Stability Board with recommending reforms to Libor, Euribor, and other interest-rate benchmarks. Duffie’s recent books include How Big Banks Fail (Princeton University Press, 2010), Measuring Corporate Default Risk (Oxford University Press, 2011), and Dark Markets (Princeton University Press, 2012).