Many central banks, especially in DMs, appear unconvinced about the need for retail central bank digital currencies CBDCs (rCBDCs) and so a big revolution in the monetary system seems unlikely. There is greater enthusiasm for wholesale CBDCs (wCBDCs), which would spur efficiency gains in cross-border transactions in particular. While this might exacerbate the decline in the use of the dollar in foreign exchange transactions, CBDCs are unlikely to undermine the dollar’s more general dominance in international finance.
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