When: Monday, 3 June 2024, 17:00
Where: Konferenzraum, Department for Political Science, NIG, 2nd floor, Universitätsstraße 7, 1010 Vienna
Speaker: Carola Westermeier (Justus-Liebig-University Gießen)
Moderation: Sebastian Heidebrecht & Tobias Boos (Department of Political Science, University of Vienna)
Abstract
Even before the international sanctions regime imposed against Russia in reaction to their war against Ukraine, international financial relations had become a battleground of geopolitical struggles. Consequently, financial operators such as SWIFT, Visa, and Mastercard are increasingly perceived as political actors rather than neutral networks. As a potential alternative, financial technologies, known as Central Bank Digital Currencies (CBDCs), offer a means to redesign both domestic and international financial relations. The crucial distinction from cryptocurrencies is that CBDCs are developed within the core of the established financial system, by central banks. Currently, over 114 central banks, including the European Central Bank, the Federal Reserve, and the Bank of England, are engaged in CBDC development. China's digital yuan, already in the pilot phase, is often associated with the country's geoeconomic aspirations. Hence, the development of digital central bank currencies transcends mere payment systems; it embodies technologies that evolve amidst uncertain future expectations, shaping and being shaped by them. CBDCs have the potential to foster international cooperation or lead to fragmentation. The talk will discuss the intricate interplay of technology, security, and finance, and propose ways to conceptualize their governance.
