Matolcsy backs giving central banks ‘full authority’ to issue CBDCs

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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".

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