Central Bank Of Lithuania Joins Global Trend in CBDC Reseasches

The Bank of Lithuania has joined the global trend to research the digital currencies along with other large banks that have already shown interest in CBDC. The principal economist at the Market Infrastructure Department at Bank of Lithuania Aistė Juškaitė believes that digital currencies have several advantages:

• significant impact on the financial system,
• providing a more stable form of money in remote regions with limited access to ATMs,
• cost reduction for citizens working abroad and relying on remittances.

Also, Aistė Juškaitė has emphasized that at the moment there is no consensus on the balance of costs and benefits of using CBDC and the impact of digital money on monetary policy and financial stability. For complete clarity, it is necessary to research CBDC to identify “unexpected effects” of their use, and be prepared to mitigate them.

Juškaitė is of the opinion that central banks can offer more reliable products than private stablecoins. Since CBDC is money supported by the Central Bank, and many banks believe that such assets are more reliable, in this case, regulators should lead the research and development of digital currencies.

Image courtesy of Central Banking