CBDC: A Disrupter That Respects No Central Bank, Not Even the Fed
Earlier this week, I told Marketplace’s David Brancaccio that the Fed might not have all the time in the world to finesse its feelings about central bank digital currency (CBDC).  Some of you countered that CBDC is so consequential that it warrants nothing faster than due, deliberate reflection.  However, digitalization is an inexorable disrupter that owes no allegiance to legacy institutions.  And, when wielded in the hands of a determined foe – as may well befall CBDC – digitalization is still more dangerous to those who think time is on their side.  If CBDC supremacy were solely a matter to be settled by the global central banks and payment systems, then the Federal Reserve could design CBDC at its own pace to its own carefully-selected design.  However, China knows that CBDC is no mere payment-system refinement.  It is also a weapon of formidable power in the new, “soft” warfare that largely defines the super-power battleground.  Thus, the longer the Fed waits, the more dangerous the international financial system.