“Dirk Niepelt on the Political Economy of CBDCs,” Central Banking, 2026  

Ultimately, the macroeconomic significance of CBDC is shaped by policy choices, and political economy determines whether CBDC becomes a significant factor. To understand CBDC policy, don’t just think macro — think political economy.  

The $38 trillion U.S. Treasury debt is under close scrutiny by markets and academics alike. Assessing its sustainability, however, is far from straightforward. It wouldn’t be for any debtor — but it is particularly complex for the U.S. Treasury.

With a legislative vote on the digital euro approaching, the debate around its design and implications is entering a critical phase. This webinar will take stock of where the current proposal stands, unpacking key features, open questions, and points of contention.

The crypto system is no longer a sideshow. Dollar stablecoins now put dollar claims into circulation well beyond the regulated US banking perimeter, and cryptoisation is beginning to transform the international monetary and financial system. This column argues that the changes crypto sets in motion will be shaped by institutions and technological innovation.

Digital innovation is transforming money and redrawing the global financial landscape. From instant payments to stablecoins, CBDC, and tokenised assets, new technologies are redefining how value is created, stored, and exchanged – reshaping the roles of banks, central banks, and markets. Yet this transformation is far from uniform: while some economies are leaping ahead, others lag behind, and divergent views on the state’s role in money are creating tensions over sovereignty, control, and interoperability.

The eighth report in The Future of Banking series, part of the Banking Initiative at IESE Business School, examines the challenges digital technology poses to the framework governing money creation. Cash is disappearing from daily payments, private digital liabilities are expanding domestically and internationally, and public authorities are reevaluating the role of sovereign money.