Weidmann identifies risks and rewards in central bank digital currency
Bundesbank President Jens Weidmann feels that the introduction of central bank digital currency (CBDC) needs careful consideration. The various risks suggest that a prudent design and cautious approach would be essential, he said at the Bundesbank’s virtual autumn conference. CBDC is not necessarily needed to provide the general public with quick, secure and cheap payment methods.
Mauderer: "Climate change will cause enormous costs for our economies and our societies"
Bundesbank Executive Board member Sabine Mauderer has warned of the enormous costs that climate change will cause for the economies and societies. "More public and private money needs to flow into research and development, fostering climate-friendly innovation," Mauderer demanded at a conference. This would help to master the necessary transformation in the real economy.
Weidmann: Scale back the debt ratio after the crisis
Bundesbank President Jens Weidmann says the government acted swiftly and comprehensively in the coronavirus crisis. But finding a way out of crisis mode will be equally important. The crisis is forcing economic and fiscal policymakers to perform a tricky balancing act – supporting the economy in the short term, but not obstructing the necessary change or losing sight of the longer-term challenges.
In 2019, the trend towards cashless payments picked up. Even prior to the coronavirus pandemic, payments with debit cards (often issued in the form of "girocards" in Germany) gained ground in particular. Their usage increased by 20% on the year, with the cards being used ever more frequently for smaller transactions.