✉news BusinessBanking first seen 16 h ago, last 6 min ago, peak #6
Who pays when digital money cannot earn interest?
Economists are weighing who bears the cost if digital currencies such as central bank digital money are designed without interest, meaning holders forgo returns they could earn on bank deposits. The question matters for banks, which could face higher funding costs, and for consumers, who may lose income or face fees passed on by financial institutions. The debate touches on how governments should compensate for the lost interest in a digital money system.
Why now: Central banks are actively designing digital currencies and the question of remuneration is a live policy issue.
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