Put CBDCs on the back burner for now

Herbert Poenisch

AS MOST central banks research introducing digital currencies, the world is embroiled in an inflationary storm not seen in 30 years. Annual inflation rates in the second quarter of 2022 are approaching 10 per cent in advanced economies and up to 70 per cent in emerging economies such as Turkey.

It is high time that central banks devote all their energies to fighting inflation, their raison d’être. Dabbling in digital technologies, given the lack of expertise in many central banks, should be put on the back burner.