Report
Patrick Artus

Governments and central banks do not like to lose seignorage

What economic policies do governments and central banks pursue if they want to retain seignorage ? Seignorage is currently mainly collected by banks, thanks to deposits; banks’ reserves at the central bank do not bring in seignorage , as they earn the short-term interest rate. Governments and central banks can then seek to bring money back into the central bank's balance sheet, and therefore develop central bank cryptocurrencies; Seignorage could be moved into private currencies (private cryptocurrencies), which would be very negative from the point of view of governments and central banks; it is therefore likely that the use of private currencies will be increasingly constrained by regulations.
Provider
Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Patrick Artus

Other Reports from Natixis

ResearchPool Subscriptions

Get the most out of your insights

Get in touch