The digital money drama has three actors: 1. public digital money (CBDC), 2. Stablecoins and 3. bank deposits, which is now the massively used digital currency around the world.
Public digital money (CBDC) it has the advantage that it cannot produce collapses in the flow of money and allows direct monetary policy to be implemented.
Stablecoins can play a very positive role as long as regulation requires that their reserves be 100% public money. Otherwise they would lead to the same problems of bank deposits, that is, the risk of crisis in the flow of money, as well as the ability to create money and therefore seriously disturb monetary policy.
The most positive effect of CBDCs and some properly regulated Stablecoins is that they would trigger the liberalization of payment services today monopolized by bank deposits.
Bank deposits will hardly be able to maintain the protections and privileges of the State for long. Competition in a free market requires a balanced playing field in which no one has different privileges or obligations from others. Savings banks and commercial banks will have to transform themselves into entities that offer their services in competition and without state support. It is foreseeable and desirable that the State help them in this process of de-monopolization.
All this -and more- I was able to comment on a very pleasant conversation with Jose Carlos Diez.