Bitcoin won’t eclipse central banks
By Huw van Steenis / Bloomberg Opinion
Innovation in central banking often starts in small markets. New Zealand was the first country to formally adopt inflation targeting as we now know it in 1990. Today, the Bahamas and Cambodia lead China in piloting central bank money in electronic form.
However, few realize it was Finland that pioneered the world’s first central bank digital currency (CBDC). The experiment has some important lessons for those feverishly trying to figure out how revolutionary CBDCs will be, including the UK, which joined the club just last month with a new task force.