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The Orkney Slew And Central Bank Digital Currencies, Jeffery Y. Zhang, Gary B. Gordon
The Orkney Slew And Central Bank Digital Currencies, Jeffery Y. Zhang, Gary B. Gordon
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This Article on central bank digital currencies is motivated by a parable, The Orkney Slew, which is set in an archipelago. Based on the parable, we point out a significant economic market failure that exists in the cross-border payments realm. The analysis then focuses on real-world examples and the national security concerns, including for Anti-Money Laundering/Combatting the Financing of Terrorism (AML/CFT) and the continued efficacy of U.S. sanctions, associated with the rapidly evolving digital payments landscape.
Many central banks around the world are now cooperatively experimenting with cross-border interoperability of digital currencies. These efforts are driven by the idea of …