The president of the Bundesbank and a member of the European Central Bank (ECB), Joachim Nagel, emphasises the significance of central banks embracing technological innovation and implementing central bank digital currencies (CBDCs) in order to maintain their relevance in the future. This is in response to the fact that the financial environment is undergoing rapid change.
Nagel highlights the need of central banks modifying their business models and reacting to the altering payment environment in order to maintain their competitive edge. This is necessary in order for them to continue to survive. Central banks are needed to research new avenues in order to ensure that they continue to be relevant. This is because the usage of physical money is becoming less desirable.
Nagel lays a significant amount of stress on the importance of central banks using…