Cryptoassets: The good, the bad and the advent of CBDCs
Fecha: noviembre 2021
Santiago Carbó Valverde, Francisco Rodríguez Fernández
Cryptoassets
SEFO, Spanish and International Economic & Financial Outlook, V. 10 N.º 6 (November 2021)
Cryptoassets draw admirers and detractors in equal amounts. They are, nevertheless, here to stay and are destined to play a prominent role in the global financial system over the coming decades, as renowned institutional investors and central banks are already acknowledging. However, it is not yet clear which type of asset will prove most dominant. Moreover, there are questions regarding the intrinsic value of a broad number of these assets, with potential risks for their holders and for the stability of the financial system. Here, banks could play an important role. These institutions have a comparative advantage given their experience with financial regulation and would benefit as they transition towards digital service platforms. Central banks are also increasingly considering how they could influence the development of cryptoassets. For example, the ECB is examining a number of options including a system of citizen retail accounts. However, this would have consequences, such as banks’ increased reliance on wholesale versus retail funding, with potentially adverse implications for their margins.