HE National Bank of Cambodia is among three central banks leading the world in retail central bank digital currency (CBDC) development, according to a new book. Launched June 16 by the Asian Development Bank Institute in Tokyo, the book says cash faces “growing competition” from e-money and crypto assets issued by private firms.
However, “crypto assets including global stable coins like Facebook’s Libra, if used widely by the general public, might erode the effectiveness of monetary policy,” the book warns.
Widespread public use of crypto assets might also promote “substantial depreciation” of currencies in some developing economies, “possibly leading to foreign debt crises”. “There is also a risk of promoting illegal and terrorist activities and a risk of violating privacy due to inadequate consumer protection rules.”