Our cooperation partner Frankfurt School Blockchain Center has published a research paper on Libra vs. Central Bank Digital Currencies (CBDC).

Libra vs. CBDC: Implications for European Banks

Authors: Philipp Sandner, Jonas Gross, Philipp Schulden, Lena Grale

Here are their key findings:

1. Existing payment systems get more and more disrupted.
2. The announcement of the Facebook-initiated Libra stablecoin is perceived as a game-changer for the financial sector.
3. Central banks discuss the introduction of their own digital currencies (CBDC).
4. Both, Libra and a Euro CBDC might heavily affect European banks.
5. Experts fear that large-scale financial disintermediation of the financial sector could take place, and digital bank runs could be triggered.
6. Libra and a CBDC Euro should not only be seen as threats but also as opportunities, as banks might have the opportunity to develop new business models.

You can download or read the full paper at SSRN.