Issuing a central bank digital currency (CBDC) should not decrease seigniorage, panellists at the Central Banking Summer Meetings said on June 13.

Seigniorage – the revenue a central bank makes from printing notes, an important source of financial independence – is under threat in an increasingly digital economy.

But a CBDC should not reduce central bank income, “because the digital currency will just change the composition” of the narrow money measure M0, one panellist said.

Retail CBDC may

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