The ABCs of CBDCs
Digest
This episode delves into various global economic and technological developments. It begins by analyzing the recent downturn in Turkey's stock market, attributing it to the central bank's aggressive interest rate hikes. Investors are seeking better returns elsewhere, leading to a decline in the Bist 100 index. The episode then shifts focus to the Ukraine war, highlighting Telegram's significant role as a communication platform for both Russian and Ukrainian forces, as well as civilians. Its popularity in Ukraine has skyrocketed, with many relying on it for news, communication, and air-raid alerts. Finally, the episode examines Thailand's digital wallet program as a potential model for central bank digital currencies (CBDCs). The program, which aims to distribute digital cash to low-income households, highlights both the potential benefits and risks of CBDCs. These benefits include faster transactions, lower costs, and enhanced financial inclusion. However, concerns remain about privacy, government control, and potential for social engineering.
Outlines
Global Economic and Technological Developments
This episode discusses the recent downturn in Turkey's stock market, attributed to the central bank's interest rate hikes. It then explores Telegram's significant role in the Ukraine war, serving as a primary communication platform for both sides. Finally, the episode examines Thailand's digital wallet program as a potential model for central bank digital currencies (CBDCs), highlighting both the benefits and risks of this technology.
Keywords
Central Bank Digital Currencies (CBDCs)
Digital forms of a country's currency issued by its central bank. They offer potential benefits like faster transactions, lower costs, and enhanced financial inclusion. However, they also raise concerns about privacy, government control, and potential for social engineering.
Telegram
A messaging app that has become a crucial communication platform in the Ukraine war, used by both sides for news, coordination, and communication. Its popularity stems from its lightweight nature, versatile features, and relatively lax content moderation policies.
Bist 100
Istanbul's benchmark stock index, which has experienced a significant decline in recent months due to the central bank's interest rate hikes. This downturn marks the end of a period of strong growth in Turkey's stock market.
Turkey's Stock Market
The Turkish stock market has recently experienced a downturn due to the central bank's aggressive interest rate hikes, leading investors to seek better returns elsewhere.
Ukraine War
Telegram has become a vital communication tool in the Ukraine war, used by both Russian and Ukrainian forces, as well as civilians for news, coordination, and communication, including air-raid alerts.
Thailand's Digital Wallet Program
Thailand's plan to distribute digital cash to low-income households through digital wallets provides a real-world example of how CBDCs could function, highlighting both the potential benefits and risks of this technology.
Q&A
What factors are contributing to the downturn in Turkey's stock market?
The central bank's aggressive interest rate hikes are driving investors away from Turkish equities, as they seek better returns elsewhere.
How is Telegram being used in the Ukraine war?
Telegram serves as a primary communication platform for both Russian and Ukrainian forces, as well as civilians. It is used for news, coordination, and communication, including air-raid alerts.
What are the potential benefits and risks of CBDCs?
CBDCs offer potential benefits like faster transactions, lower costs, and enhanced financial inclusion. However, they also raise concerns about privacy, government control, and potential for social engineering.
Show Notes
Turkey’s stock rally hits reverse as juicy interest rates lure savers out of the market, and the FT’s Polina Ivanova explains how Telegram is a lifeline for both Russian and Ukrainian troops and civilians. Plus, Cornell University’s Eswar Prasad says Thailand could open a window into how central bank digital currencies might be used in future.
Mentioned in this podcast:
Turkey’s blazing stock rally falters with high rates luring savers away
War unfiltered: how Telegram straddles the Ukraine fron tline
Thailand may tell us a great deal about the future of money
The FT News Briefing is produced by Niamh Rowe, Fiona Symon, Sonja Hutson, Kasia Broussalian and Marc Filippino. Additional help from Michela Tindera, Prakriti Panwar, Breen Turner, Sam Giovinco, Peter Barber, Michael Lello, David da Silva and Gavin Kallmann. Our engineer is Monica Lopez. Topher Forhecz is the FT’s executive producer. The FT’s global head of audio is Cheryl Brumley. The show’s theme song is by Metaphor Music.
Read a transcript of this episode on FT.com
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