The article titled "The Case for Central Bank Electronic Money and the Non-case for Central Bank Cryptocurrencies" by Aleksander Berentsen and Fabian Schär, published in the Federal Reserve Bank of St. Louis Review in 2018, discusses the potential role of central banks in issuing digital currencies and the distinction between central bank electronic money and cryptocurrencies.

The authors argue that central bank electronic money is a feasible alternative to physical cash, as it could provide the same benefits without the drawbacks of physical cash such as storage, transportation, and counterfeiting issues. Central bank electronic money would be a digital representation of sovereign currency, directly issued by the central bank, and could be used in various forms, such as through digital wallets or payment cards.

However, the authors make a clear distinction between central bank electronic money and central bank cryptocurrencies. They argue that a central bank-issued cryptocurrency, which would have features such as anonymity and decentralized management, is unnecessary and may have negative consequences, including facilitating illicit activities, undermining financial stability, and causing difficulties in implementing monetary policy.

The authors conclude that while central bank electronic money has potential benefits, central bank cryptocurrencies are not a practical or desirable solution. They believe that central banks should focus on improving the existing payment infrastructure rather than exploring the issuance of their own cryptocurrencies. 

Personally, I think that one of the problems with CBDCs being issued and controlled by central banks means they are subject to government oversight and control. Government centralization contradicts the decentralized idea of cryptocurrencies.  Also, CBDCs could involve a higher level of user identification and monitoring, raising concerns about privacy and surveillance. Plus being more susceptible to censorship and restrictions on transactions.

Thanks for reading. You can support and reward my writing via: 

Pay Pal – [email protected]

Algo - NCG6LBALQHENQUSR77KOR6SS42FGK54BZ5L2HFDSBGQVLGYIOVWYDXFDI4

ADA – addr1q9vfs6nqz4xmtnpljwhv4tukyskd2g7enxd87rpugkwwvfun5pnla5d5tes2mvurrc77e7837yd0scrfk063qlha8wgs8d4ynz

Bitcoin 3HbxyDXE9MhNQ8RqsirqgYvFupQzh5Xby2

ETH - 0x8982cdb97bd23f092f78a16a4fc93c5c4607a285

Seeds – vladlausevic

Skycoin – ZxjhWMJRbTNCRQzy5MekZzH4fhdWFCqBP8

Tezos — tz1QrRzkTAKuPKF8dmGW6c1ScEHBUGvoiJBM