Crypto assets may force central banks into policy synchronisation

Paper examines the impact a global crypto asset would have on the “impossible trinity”

synchronised swimmers

Economists have found a new way in which central banks’ “trilemma” could become a dilemma as crypto assets harm monetary policy independence. This could trigger competitive devaluation by central banks and undermine the value of traditional currency, they warn.

At the National Bank of Austria’s digital currency conference in October, Pierpaolo Benigno, Linda Schilling and Harald Uhlig set out their ideas on ‘crypto-enforced monetary policy synchronisation’.

In their paper, the economists argue

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