Central banks such as that of Sweden may be exploring the possibility of issuing official digital money, but Germany’s central bank chief is skeptical. Bundesbank president Jens Weidmann warned that the development could exacerbate bank runs in crisis situations, and introduce volatile demand. After all, if interest rates are low and you have digital money, why keep it in a commercial bank account? (Fortune newsletter)
– Central banks must exercise caution in introducing digital currencies that could potentially destabilize the financial system during times of crisis, Bundesbank President Jens Weidmann said on Wednesday.
Central banks around the globe are examining the benefits of digital money, spearheaded by the Swedish Riksbank with its e-krona pilot scheme, a potential response to the rapid decline in the use of cash.
But Weidmann, an influential voice on the European Central Bank’s Governing Council, warned that widespread use of digital central bank money could have serious consequences.
The digital currency redesign is a huge issue which must be examined. Yet, the blockchain DAPPS remain a promise for commerce – Nigeria should explore how we can deepen capabilities in that space.
Today, I do think Nigeria is at it again. But this time, it is AI and blockchain for Nigeria. But we do not need government as core driver because the (inception) cost here is not as huge as microelectronics. We only need government to help harmonize certain elements. Largely, Nigeria desperately needs an AI and Blockchain Roadmap to ensure we can enjoy synergies across our sectors.