Central Bank Digital Currencies Could Boost GDP, Bank of England Says
The Bank of England has released new research suggesting that a central bank-issued digital currency could lead to an increase in gross domestic product. The conclusions were drawn from a working paper published today that examined how a central bank-backed digital currency (referred to as a CBDC in the paper) could yield macroeconomic benefits, while providing banking regulators a clearer picture of the financial system. The authors wrote: "First, it leads to an increase in the steady-state level of GDP of almost 3%, due to reductions in real interest rates, in distortionary tax....
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