Recent developments in payments technology raise important questions about the role of central banks either in providing a digital currency themselves or in supporting the development of digital currencies by private actors, as some authors of this post have discussed in a recent IMF blog post. In this post, we consider two ways a central bank could choose to become involved with digital currencies and discuss some implications of these potential choices. How Could a Central Bank Support Stablecoins? One criticism of cryptocurrencies, such as Bitcoin, is that they exhibit excessive price volatility, which undermines ... (full story)