Future of CBDC

As more countries adopt CBDCs there can exist an interoperable real-time payment and settling systems that can span across borders. This can be a good thing or a bad thing. International markets and prices will become more responsive and volatile. While it will encourage faster and more up to date settling of payments across the globe. In a way this will help provide a better snapshot of economies around the world. CBDC’s can change the risk free rate. If the central bank directly offers a safe place to park money for any legal citizen, that will by definition become the risk free rate of the country. Bank rates will be a marked up rate for the additional services that it can provide. From a nordic model point of view, this perfectly fits into the distributed state controlled welfare system. It can also make things like universal basic income and other government benefits more accessible.