(Finance) – “The close connection created between traditional money and finance as a result of plentiful money and zero interest rate policies or negative has accentuated interest in all forms of cryptocurrency and for the activity that will develop in the metaverse, imposing the integration of these new realities in the economic analysis and therefore in the financial regulation”. This was stated by the president of Consob, Paul Savonaintroducing the delivery of the first Bancor award to former Bank of England governor Mervyn King.
“The new digital world – continued Savona – it requires a theoretical understanding of money and finance which takes up themes developed by Mervyn King to critically re-examine the main traditional schools of thought on the subject: creation and self-governance of money, entrusting monetary authorities with the independent exercise of creating the quantity of money and/or interest rates or setting rigid golden rules of monetary creation, obviously in function of real growth, in a system where fiscal policy plays a concomitant and relevant role”.
According to the president of Consob, “the The issue is now further complicated by the proposals to create a public digital currency. If the Central Bank Digital Money would make bank deposits lose the monetary nature, decentralized finance would radically change the supervisory monetary and credit structures”.
“Despite this significant difficulty of institutional adaptation, you will have to switch from self-certified decentralized accountingif the West intends to stay abreast of the necessary redefinition of the international trade payments regime which takes up the never dormant instances that led to the imperfect Bretton Woods agreements – he explained – Rainer Masera suggested that the innovative technological context offers the opportunity to create a digital bancor, perhaps it is more appropriate to say a DLT-bancor”.