Yeah not sure if he was working on it before he left or if it's one of his retirement projects...

Ha yeah I kinda wanted to skip it too but it's actually very interesting

Note the way we display charts makes them very difficult to translate, so we're keeping them in English for now.

Let us know what you think, and especially if anything looks wrong! We are using AI translations that are being checked by Spanish-speaking sub-editors, and while we have tried to squash all the bugs/inaccuracies, there will inevitably be a few that get through...

But also there's a growing sense among central banks that physical cash is a critical part of geopolitical resilience. It's not just people concerned about privacy (though that's legit imv) - it's also people rightly worrying about how fragile electronic infrastructure may prove

Very interesting, thanks. Yes you have to cover operating costs which might get v difficult without transaction fees esp if rates go to zero again. I don't have a clear idea of how high those fees need to be but 0.6% is a useful benchmark. Might be hard to compete with CBDC.

Nice of the BoE not to make it 100% unremunerated reserves

Indeed. Cross-border payments could be one viable use, but creates big headaches for central bankers - do you allow a 'systemic' stablecoin with reserves overseas? Probably not. So maybe proves your point.

Well, TBC in the BoE's case. But if you're accepting that it's a kind of money then I think you probably have to.

Yeah she definitely throws some shade their way!

Full speech here: www.ecb.europa.eu/press/key/da...