The issue is whether the state has to be in the payments business. CBDCs amount to that. CBDCs are similar to stablecoins, rather than currencies. Money transfer is not the preserve of the government bodies. They have an undue advantage over the rest of the monetary system.

The Bank of England, the European Central Bank, the Federal Reserve and the People’s Bank of China are contemplating on this. CBDCs are a response to private cryptos. However, it gives government access to personal data. The governments can slide into people’s bank accounts to resist the behaviour they do not approve of.

Central Banks could impose negative interest rates to erode people’s savings.

Many with no bank accounts and no interest connection could be left out of the financial system. Digital wallets are akin to government agencies being in e-commerce.

There is not much circulation of CBDCs to undermine existing system and there is not so little circulation that these become irrelevant. It demands certain administrative skills.

CBDCs are a slippery slope. They affect civil liberties and sneak into the market place. They disrupt the banking system. They are a solution without a problem.

Central banks exist as regulators. They need not participate in digital currency.