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CBDCs Hold No Interest Without Full Anonymity: Banxico Deputy Governor

12:01 Thursday , July 11th 2019
Central bank digital currencies (CBDC) will not hold much interest for the general public unless they provide full anonymity, argued Javier Calafell, deputy governor of the Bank of Mexico (Banxico), Mexico's central bank.
While outlining CBDCs' advantages such as security of payments and cost effectiveness, Calafell believes that there are a number of significant factors that prove their ineffectiveness. According to the official, the existing digital systems already satisfy payment functions of CBDC, while its "back-up" function does not make much sense since the central bank handles the main part of the payment systems.
Calafell argued that cash is unlikely to see a significant decline in demand in the foreseeable future, which makes it difficult to expect that the issuance of CBDCs will change the trend meaningfully.
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