Future of money
The revolution of stablecoins and the opportunities of Central Bank Digital Currencies in the era of the Coronavirus crisis
Money has seen multiple evolutions, moving from barter, scarce objects and precious metals to paper money and then digital money. It has always been meant as an instrument of state power.
However, thanks to the development of new blockchain use cases and the present dawn of private digital currencies and stablecoins, money as we know it today is being questioned, giving rise to several reactions. The coronavirus crisis encourages the research and development of Central Bank Digital Currencies (CBDCs) and can accelerate the CBDC race as this tool allows to abandon cash, send payments rapidly and carry out targeted stimulus policies (helicopter money or helicopter drone).
Therefore, through this report, it would be useful to enlighten the developments of this subject:
- Why is money a tool for sovereignty?
- Why are private digital currencies and stablecoins initiatives such as the Libra project perceived as a threat to sovereignty by some institutions?
- What are the countries central banks’ reactions?
- To what extent do CBDCs see a renewal of the international monetary and financial system?
- How can CBDC help to distribute helicopter money during the COVID-19 pandemic?