Matolcsy backs giving central banks 'full authority' to issue CBDCs

Fintech

Image by Shutterstock.com

National Bank of Hungary (MNB) governor György Matolcsy voiced his support for giving all central banks full authority to issue central bank digital currencies (CBDCs) in an opinion piece posted on the central bank website.

Responding to a survey by professional journal Central Banking that showed just 39% of 31 responding central banks said they had a legal mandate to issue CBDCs, Matolcsy made a case for giving all central banks a mandate to issue CBDCs.

"In my view, all central banks should be given the full authority to issue their digital currencies in order to provide the whole financial system with a regulated path to the transition from the present petrodollar/Eurodollar system to a new one," Matolcsy said.

"CBDCs can mix credit, fiscal easing, AI, Big Data, blockchain technologies, and even cryptocurrencies in order to help the global financial system creating the new, geopolitically divided - western and eastern - world of global finance. CBDCs will also let us to use targeted means instead of general QEs," he added.

Matolcsy warned that, without CBDCs, "we will not be able to follow the 'orderly closure' of the outgoing global financial order that prevailed between 1996 and 2021".

ADVERTISEMENT

Gen Gov't Deficit to Reach 6.1% of GDP in 2022 - Varga Analysis

Gen Gov't Deficit to Reach 6.1% of GDP in 2022 - Varga

Horthy Statue to be Unveiled in Parliament Parliament

Horthy Statue to be Unveiled in Parliament

UPS Appoints Regional Director Appointments

UPS Appoints Regional Director

Completion of Metro Line M3 Renovation Delayed City

Completion of Metro Line M3 Renovation Delayed

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.