A central bank digital currency (CBDC) is a digital form of a country’s resp. economic area’s fiat currency which is backed by the government and is issued by a central bank. CBDCs are based on the Distribruted Ledger Technology such as cryptocurrencies like Bitcoin. However, CBDCs differ from cryptocurrencies as they are accepted as a legal tender in a country. CBDCs have also been considered by the European Central Bank for quite a while (see our blog article here (German)).
Tanja Aschenbeck, alongside with MEP Markus Feber, ECB director Ulrich Bindseil and Bank of England member Natasha de Terán, is quoted in an article of the IFLR.
In the IFLR article, Tanja deals with the questions on how have sanctions and the war in Ukraine affected policymakers’ and regulators’ views of what is needed in CBDC design (particularly for the digital euro), are governments likely to turn to CBDCs as an opportunity to hedge against potential sanctions which could target payment systems and how much of a concern is AML for CBDCs policymakers, especially under the current sanctions regimes?
The article can be found here (paywall).