Raphael Auer News Today

Central bank digital currencies are increasingly regarded worldwide as viable means of payment. But how do CBDCs affect welfare when used as stores of value? A recent study investigates the ramifications of CBDCs as public money serving as stores of value, customers’ heterogeneous beliefs about bank stability and how it all impacts banks.

Cryptocurrencies and CBDCs have the potential to enhance financial inclusion. However, the lack of quantitative data makes it challenging to evaluate their impact. To assess their financial inclusion capacity, we need to consider multiple layers and adapt strategies to local needs and policies.

The Bank of International Settlement has worked with two of Europes central banks to explore preventing the security risks posed by quantum computers

<p><span>Good afternoon to you all.  Thank you to R3 for inviting me to speak at CordaCon in London.</span></p>

<p><span>Recent volatility has exposed serious vulnerabilities in the crypto financial system.</span><a title="footnote 1" href="https://www.federalreserve.gov/newsevents/speech/brainard20220708a.htm#fn1"><span>1</span></a><a name="f1"></a><span> While touted as a fundamental break from traditional finance, the crypto financial system turns out to be susceptible to the same risks that are all too f...

On March 9, 2022, President Biden issued an executive order on the "responsible development of digital
assets." He directed a "whole government"...

Central banks are rushing out privacy-infringing CBDCs to try to compete with crypto, which is outside their control. But while proponents cite numerous advantages, anything a digital dollar can do, crypto can do better.

The Bank for International Settlements (BIS) today announced that Raphael Auer will join the BIS Innovation Hub (BISIH) team as the head of the upcoming Eurosystem Centre, expected to open in the first half of 2022.

<ul>
<li><span>Mr Auer is currently a principal economist in the Innovation and the Digital Economy unit of the BISs Monetary and Economic Department</span></li>
<li><span>He has contributed extensively to BIS policy publications and published widely in the field of central bank digital currencies, stablecoins and cryptocurrencies</span></li>
<li><span>The BIS Innovation Hub Eurosystem Centre will have l...

This feature analyses decentralised finance (DeFi), a new form of crypto intermediation that uses automated protocols on blockchains and stablecoins to facilitate fund transfers. Even though links with traditional finance are currently contained, DeFi warrants closer monitoring because of high leverage, limited shock-absorbing capacity and built-in interconnectedness.