Energy prices are leading a steep inflation climb not seen in the eurozone since pre-pandemic times. As the ECB has framed its monetary policy around boosting inflation, which sat at -0.3 percent at the end of 2020, will the bank implement a monetary-tightening policy now that it has achieved its target or wait to see if this trend lasts?
Bank of Italy
Digitisation has strengthened the trend toward a cashless system, with central banks exploring the feasibility of central bank digital currencies. Spearheaded by The Bahamas with its release of the sand dollar, many central banks are in various stages of releasing their own cryptocurrencies. Although China is the dominant leader in CBDC development, other central banks are catching up. CBDCs share some of the attributes of popular cryptocurrencies but not all.