✉news BusinessBanking first seen 19 h ago, last 9 min ago, peak #6
Who pays when digital money cannot earn interest?
The Bruegel think tank raises a key design question for central bank digital currencies: if digital money held by the public pays no interest, users bear an opportunity cost while issuers gain cheap, interest-free funding. The debate touches on how central banks should compensate households and banks, and whether a zero-remuneration digital euro or similar currency would shift costs onto consumers.
Why now: Central banks are actively designing digital currencies and the question of interest remuneration is central to those decisions.
BruegelEuropean Central Bankcentral banks
Evidence
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