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But it could also create challenges, which we would need to manage very carefully. So we are actively researching CBDC and drawing on expertise from across and outside of the Bank. Our 2020 CBDC Discussion Paper outlines our key areas of research, and our summary of responses to the Discussion Paper outlines the feedback we received. What Are Central Bank Digital Currencies? It charged a married New York couple with allegedly laundering bitcoins now valued at over $4.5 billion that were stolen in the 2016 hack of the digital currency exchange Bitfinex. The story of digital currencies is a continuation of the long-running saga of economics, markets, and commodity exchange in human society. Looking back at the history of the internet, we can conclude that public-key cryptography and digital signatures enable digital currencies. “Countries are seeking to preserve key aspects of their traditional monetary and financial systems, while experimenting with new digital forms of money”. 1 W...