I’ll be participating in a GovCoins panel on July 21 at 10:00 pm EST co-hosted by the Asia News Network. I’ll be discussing the latest central bank digital currency (CBDC) developments.
Based on lessons learned from history, Gary Gorton and the Fed’s Jeffery Zhang argue that privately produced monies are not an effective medium of exchange because they are not always accepted at par and are subject to runs. They present proposals to address the systemic risks created by stablecoins, including regulating stablecoin issuers as banks and CBDC issuance.
However, in a series of threads, George Selgin critiques a number of assumptions made in the paper, including its interpretation of the historical record of private currencies:
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